Shared life insurance simultaneously includes the insurance coverage, possibility of investing part of the paid insurance premium in selected assets and receiving return on investment. The draft law establishes the specifics of such insurance service.
As the explanatory note says, SLI is “an analogue of shared life insurance (unit-linked) common in foreign insurance markets.” Such insurance type includes both insurance coverage and possibility of investing part of the insurance premium in selected assets to generate income depending on the market value.
The Ministry of Finance emphasizes that the difference between the new service and existing types of long-term life insurance is the ability to invest in a wide range of assets. According to the ministry, this may in the long term provide greater profitability and make the shared life insurance more attractive than alternative instruments.
“In order to implement the shared life insurance, an insurer, in addition to obtaining a license for voluntary life insurance, will also be required to obtain a license to manage investment funds, mutual funds and non-state pension funds,” the ministry’s materials state.
Photos are from open sources.
