The parliament is currently considering a bill that provides for subsidizing endowment life insurance within the framework of the state educational accumulation system (SEAS). Insurers believe that the bill will come into force in April next year, but for now Kazakhstanis can open an educational deposit in several banks, to which the state annually adds up its own premium of 5 or 7% to the rate of up to 9%. “The insurance premium subsidy will be 5%, and it will be 7% for a large family (4 children and more). This product is much more attractive than a deposit, since as a whole, it not only accumulates funds for education but also guarantees insurance coverage,” explained Vitaly Lyubimov, Managing Director of LIC Halyk Life. - For example, in the event of death or disability of the payer, the insurance benefit will provide payment for education. Besides, unlike a bank deposit, there is no limit on the guarantee amount for an insurance product. As for guarantee, it is planned to include life insurance carried out within the framework of the SEAS in the list of types of insurance guaranteed by Insurance payments guarantee fund”.
Life insurance companies in the developed countries of the world have been supporting government social programs since the middle of the last century. For instance, when there is only one parent in a family, the entire burden of responsibility for the present and future of the younger generation lies entirely with him. In case of difficult health situations, such a family needs a financial cushion. A life insurance policy allows preserve the family well-being in the event of the breadwinner’s loss of health or his death. Local salaries often do not allow saving money for a rainy day.
Therefore, insurers are working on two subsidized social products. “The first product is a purchase of endowment life insurance policy for children. The state could subsidize insurance premiums, so that by the age of 18, parents could have the opportunity to give a start to full-aged,” the speaker explained. Such a policy will also guarantee a child's income in the event of the parent’s death.
The second product involves pension plans by analogy with the West. “This will motivate people to pay contributions for future pensions, since these savings can also be subsidized by the state. Within the local budget, expenses are not large, but the cumulative effect will be significant, because the population will start creating pension plans and ensuring their future,” says Vitaly Lyubimov.
The US retirees receive income from three or four sources. The first is social insurance, and others are their own retirement plans. This approach guarantees stable incomes in old age allowing them to live without worrying about the future. “Life insurance is a long-term investment with a 10-20 year lag. To ensure profit for their clients, insurers invest in the economy and become large investors in various sectors of the national economy. That is, people, the state, stock market, and entrepreneurs benefit from subsidizing socially significant life insurance products. Not everyone realizes the importance of this issue so far, but we will be persistent and strive for subsidies for social types of insurance,” resumed the speaker.
Photos are from open sources.
