Universal life insurance in US dollars, the most popular foreign currency among the population of the Republic of Kazakhstan, provides not only protection but also maximum benefit. The client receives his savings upon the contract termination with indexation to the US dollar. Let us remind you, that the official US exchange rate as of August on average amounted to 386.67 tenge, 4% higher compared to the year beginning and 8.5% higher than in August 2018.
The use of USD as an instrument for investing and savings was also indicated by the USD net sales, which increased almost 2 times and amounted to almost 1.1 trillion tenge in January-July, 2019. Thus, people in Kazakhstan bought dollars more than handed for over than 1 trillion tenge in exchange offices.
Compared to the second-tier banks, where the US dollar rate recommended by KDIF should not exceed 2%, the annual effective rate of return of insurance companies varies from 2.3% to 3.41%.
Only Nomad Life offers endowment in US dollars among the largest insurance companies. The Companies Standard Life and Freedom Finance Life also offer similar products in the insurance market as a whole.
Among the three companies offering endowment in US dollars, Nomad Life offers the highest annual effective rate of return of up to 3.41%. LIC Freedom Finance Life is in the second place (up to 3.28%), and Standard Life is the third (up to 3.25%).
The insurance term in Nomad Life is from 2 to 15 years, and in Freedom Finance - from 3 to 10 years. The Standard Life Company offers 2 products: with the term from 3 to 10 years, and from 15 years or more.
7 companies out of 27 represented in the insurance sector of the Republic of Kazakhstan are engaged in life insurance. Over the 7 months of this year, the volume of collected life insurance premiums has exceeded 40 billion tenge, which is almost half as much compared to the same period last year.
