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Why do young people need life insurance?

Young people feel confident about the future, believe that everything will be fine and usually do not think about unforeseen circumstances. However, no one is immune from unexpected events. Life insurance can come to the rescue in such cases.
Why do young people need life insurance?

Insurance can deal with financial obligations such as mortgage payments and loans. In addition, endowment life insurance policies provide an opportunity to create an additional financial cushion and save up for a vacation or an expensive purchase.

It is important to note that life insurance can be more financially rewarding if insurance policy is purchased at the young age, as insurance premiums are usually lower making insurance more affordable. By purchasing insurance early in life, it is possible to provide long-term protection and peace of mind to your loved ones.

“For the formation of medium- and long-term savings there are products of accumulative life insurance (ULI) and investment life insurance (ILI) in the product line of insurers. Of course, one can save money with the help of a deposit, but our products combine several functions at once: savings and, directly, insurance. In other words, LIC products are universal,” says Ramai Kurbangaliyev, Executive Director of Retail Sales at LIC Nomad Life.

The speaker says that the growing interest in endowment life insurance (ULI) in Kazakhstan is not accidental. This type of insurance provides a variety of opportunities to achieve financial goals, which makes it attractive to many people. For example, young people who want to buy a car can use an endowment insurance policy to accumulate the necessary amount, determine the size and frequency of payments in order to receive money for the desired car at the end of a certain period.

Many life insurance companies offer an online service that allows apply for an endowment life insurance policy easily and conveniently. It is possible to get insured both at the insurance company’s office and through Internet applications, where one can select the desired parameters of the insurance policy with a few clicks.

“Endowment life insurance provides practical and flexible solutions for planning financial goals, which makes it attractive to young people seeking financial independence and a secure future. For example, our company expanded the Zoloto Nomadov currency savings product by setting the maximum rate to 4.1%,” Ramai Kurbangaliyev notes.

The guaranteed return ranges from 1.5% to 4.1% in USD, which exceeds the average yield of classic financial instruments by 3-4 times. The profitability of an endowment insurance policy is directly related to the validity period of such a policy. The longer the term of insurance, the higher is the rate of return.

“Inflation in Kazakhstan is now in the double-digit zone. Financial institutions cannot provide income in tenge that will exceed the price increase and bring real income to their customers under these conditions. Therefore, we set a goal to maximize the return of our dollar product Zoloto Nomadov. In addition to a high dollar return, one should not forget about the main component: a life insurance policy is financial security for loved ones from unforeseen circumstances, which gives significant value to a savings instrument,” concludes Nomad Life LIC specialist.

In general, life insurance for young people can be a reliable way to provide financial security, create financial reserves for the future and implement long-term financial plans.

Photos are from open sources.

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