Myth #1: Only rich people need life insurance
This is a common misconception. In fact, life insurance can be beneficial for people of all income levels and provides financial security for the family in the event of unforeseen circumstances such as the death of a breadwinner.
Thus, since last year, domestic life insurance companies have been participating in the State Educational Savings System (SESS). By signing an educational endowment life insurance contract within the framework of the SESS, parents will be able to save up for their children’s education receiving a state premium in the amount of 5% to 7% per annum, in addition to the investment return accrued by the insurance organization.
Besides, insurers offer endowment and investment life insurance programs with the policy purchase threshold of approximately $100 in tenge equivalent.
There are also retirement annuities, which, when transferring funds from the UAPF, allow receive a lifetime income.
Myth #2: Life insurance is a waste of money
Some people believe that if an insured event does not occur, the paid insurance premiums are lost. However, life insurance provides security and peace of mind in the event of unforeseen events. The client also has the opportunity to withdraw part of the amount secured by the policy. What's more, some life insurance policies have a cumulative component that allows the value of the policy to accumulate over time.
For example, the Zoloto Nomadov policy provides its owners with up to 4.1% in dollar terms. This rate depends on the term of insurance, and it is fixed for the entire term of the contract. The longer the term, the higher is the return on investment. No changes in the financial market will affect the yield guaranteed by the insurance policy. The savings are not taxed. In addition to a good source of investment, Zoloto Nomadov provides life insurance coverage, which is valid 24/7 worldwide; it begins to operate from the next day after the issuance of the policy. The invested money and interest for the entire period in the event of the client’s death will be received by the heirs. The insurance benefit is made within 10 days to the person specified in the contract. Registration of inheritance rights is not required.
Myth #3: Only young people need life insurance.
Insurers do not agree with this statement. In fact, the older a person gets, the more likely they are to develop health problems. In addition, there is a convenient product in our country - annuity life insurance.
Earlier we have talked about the permanent lifetime income that a retirement annuity provides, but it is worth reminding that as of last year, it has become possible to purchase joint (spousal) retirement annuities by pooling the pension savings of spouses to provide lifetime payments to both of them.
Myth #4: Insurance companies do not pay insurance premiums.
This statement is not true. Insurance policies represent legal obligations of the insurance company to pay the insurance coverage in case of insured event.
The Agency for Regulation and Development of the Financial Market strictly supervises insurers, so they simply do not have the right to refuse to pay their customers.
It is necessary to read the terms and conditions of the policy to be sure of the coverage and requirements for getting insurance benefit.
Myth #5: One can only buy life insurance policy for themselves
It is not correct. You can get a life insurance policy for other family members or close ones when approved with them. This may be helpful in protecting the financial interests of your family or partner in the event of your death.
Photos are from open sources.
