Love and protection of the family is impossible without reliable material resources. High inflation in most countries of the world has made bank deposits stranded investments, therefore each family member is insured in 9 out of 10 families in developed European countries, the number of life insurance policies is a quarter higher than the population in the USA, which is not surprising, because one person can have several different life insurance policies.
Life and health insurance is actively developing in our country as well providing a solution to such important tasks for each person as: financial security of the family, tuition fees, large purchases and more.
“Life insurance is a way of solving the problems that any person may face, and the solution of which will give you and your loved ones a sense of security. Most of us have financial obligations and people who depend on us. Life insurance will allow fulfill the obligations even when life brings an unpleasant surprise and ruins your plans with an accident, illness or death. My experience shows that life insurance is most important for those people who have credit or other financial liabilities, and the financial well-being of the family depends on their wealth,” says Aida Kamysova, Chairman of the Board of JSC LIC Nomad Life.
Advantages of life insurance compared to other financial instruments:
- The client is guaranteed to receive money in any case. Insurance coverage is paid both on the client's survival until the end of the insurance period, and in the event of his death or disability during this period;
- Income for the entire term of the contract;
- An additional protection in unforeseen health-related situations, both as a result of an accident or a serious illness.
In order to understand whether it is worth thinking about life insurance, we recommend answering a few questions.
- Family (husband/wife, children), whose future I would like to secure
- The person is the sole (or main) source of income for their family
- Employment in traumatic production, work somehow associated with a risk to life
- Frequent driving, driving or moving in a private vehicle
- Passion for extreme sports
- Lack of reserve savings to provide finance for 3-6 months
- Lack of financial support (parents, relatives, close friends) in case of unforeseen unpleasant circumstances.
If the answer is “yes” to at least one of these questions, then you should think about purchasing a life insurance policy.
“By concluding one contract, you provide safety, accumulation of funds and protection from unforeseen situations. Banks offer to place deposits for a year, however, the same period for accumulative or investment life insurance contracts is usually minimal. The average term of such contracts is three or more years. The maximum period depends on age at which the contract is concluded. During the term of the contract, in case of absence of insured events, the only action of the insured is to pay the premiums,” says the executive of JSC LIC Nomad Life.
If a beneficiary (recipient of payments) is appointed by the contract, in the event of the insured’s death, the insurance payout is made to the beneficiary, and is not included in the inheritance. Life insurance premiums are not “property” in the sense of the law and are not subject to confiscation, seizure or division upon divorce.
“Life insurance is a reliable product for which the client or beneficiary always receives money. Besides, such an insurance type as investment life insurance allows people to choose their own investment strategy. For example, our clients have the opportunity to track the value of their own portfolio, have the right to terminate the contract and transfer savings to the insurance part by concluding a contract with a guaranteed rate, change the strategy and transfer money to other investment portfolios depending on their “risk appetite,” the interlocutor clarifies.
Life insurance is a time-tested and popular tool in Western countries, including for tax optimization. Therefore, family people often buy life insurance, as it is a great way to show care for loved ones.
Photos are from open sources.