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Life insurance outran deposits in growth

Over the past five years the demand for life insurance programs has increased in Kazakhstan. According to the National Bank, the growth rate of life insurance premiums exceeds the growth rate of deposits. If, over the past five years, bank deposits in tenge have grown by 171.5% and US dollar deposits - by 19.2%, the life insurance premiums have increased by 183.6%. Kursiv tells why endowment life insurance (ULI) is becoming popular in Kazakhstan.
Life insurance outran deposits in growth

Life insurance is becoming popular to a large extent due to endowment programs that combine insurance and investment. When concluding an endowment life insurance contract, a client can insure his health and life against unforeseen situations, as well as accumulate money with a high annual interest rate in foreign currency.

The interest rate on a foreign currency deposit usually does not exceed 1%, while under the endowment program it is 4%. Besides, in case of dollar deposits, the rate can change unilaterally, but with endowment deposits it is guaranteed for the entire period.

The money from a foreign currency deposit can be confiscated by a court decision. The endowment funds are not subject to recovery in court proceedings. The benefit to heirs upon death of the policyholder is paid within 10 days; the benefit on foreign currency deposits is six months after receiving the right of inheritance. The amount under endowment program is not subject to division in case of property disputes.

Photos are from open sources.

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