Unit-Linked is a type of insurance contract that combines death risk insurance and investment savings. The client chooses the investment plan in such an agreement and the premiums he pays are invested according to the chosen plan.
“One of the advantages of unit-linked is the investment process, which is tailored to the client: the ability to easily change the investment strategy during the term of the contract, and the ease of investment itself. Another benefit is the exemption of payments under the agreement from taxation, unlike many other investment decisions,” says Yerlan Kambetbayev.
Investment life insurance is a financial product that combines life insurance and an investment instrument that allows you to get income by investing money in various financial assets (bonds or stocks). In fact, the insurance organization acts as a management company, investing clients' funds in their chosen areas. “The main tasks are life insurance and capital accumulation for various long-term life goals: paying for education, pension savings, buying real estate and more,” explains the LIC Nomad Life executive.
After the policy expiration, the client receives the accumulated amount, which during this time can increase several times due to the growth in the value of investments. And upon the occurrence of an insured event before the agreement expiration, the insurance organization pays out the insurance benefit and accumulated amount of investments to the beneficiary chosen by the client in advance.
“An important difference between unit-linked insurance and other types of accumulative insurance is a direct connection between the results of the contract and financial instrument chosen by the client. Insurers are required to disclose detailed information about products, in particular, indicate a list of assets, the dynamics of the value of which determines the amount of return under the policy. The profitability of the insurance part of investment life insurance ZOLOTO NOMADOV Invest (the client's investments under the program are divided into two parts: insurance and investment) is up to 3.41% in foreign currency, depending on the terms of the policy. The profitability of the investment part of the product depends on the investment portfolios chosen by the client,” Yerlan Kambetbayev clarifies.
ZOLOTO NOMADOV Invest is a classic unit-linked or investment life insurance product, which is a combination of insurance coverage (life insurance) and capital accumulation by investing in financial instruments. Unlike a regular deposit or endowment insurance with a guaranteed return, unit-linked allows clients to choose their own investment strategy and benefit from potentially higher returns. Nomad Life having analyzed a large number of investment areas and having selected the nine most interesting in terms of profitability and risks managed by the world's largest and most reliable companies, offers its clients the following investment portfolios: "500 largest US companies", "China stock market", "High Technologies”, “Healthcare”, “Energy”, “Gold Mining”, “100 Largest IPOs of US Companies”, “US Treasury Bonds”, “European Stock Market”. The client invests their assets by getting an insurance policy and choosing a strategy.
“2022 was a difficult year for global stock markets: high inflation and the US Federal Reserve’s anti-inflation measures led to corrections in the markets, while the average return since the launch of the ZOLOTO NOMADOV Invest product was 18%. With global inflation lowering next year, we expect our clients to see good gains. In practice, during a period of a sharp fall in stock markets, many investors increase their investments, because this is an opportunity to determine a favorable “entry point” for themselves in order to increase return from investment growth,” Yerlan Kambetbayev concludes.
Photos are from open sources.
