Insurers offer two main types of policies: risk and investment. These types of insurance are used for different purposes. In the first case, you have the opportunity to insure yourself, your family members against accidents and protect yourself from unforeseen expenses that can significantly reduce the quality of your life. Endowment insurance allows plan your future, make savings for important goals. Mixed insurance is the most popular today, when you combine a product, for example, your main task is to accumulate the required amount by a certain date, and in addition you purchase the most relevant risk protection programs for you, for instance, against accidents and illnesses, or fractures and burns, from critical illness and so on. These programs together will be able to solve your main task of creating savings, plus they will add confidence and security so that nothing disrupts your life plans.
Advantages
Financial protection and well-being of your family in the event of unforeseen circumstances;
Ability to accumulate the required amount;
Ability to protect the accumulated funds from inflation with the indexation mechanism;
Social tax deduction.
Drawbacks
A relatively low return on investment is, perhaps, almost the only disadvantage of insurance programs for the elderly. This is due to the limited ability of insurers to invest clients' funds. For legal reasons, they can only invest in securities with very high reliability from trusted issuers. However, this has its advantages: the client is guaranteed to receive savings at the end of the insurance period.
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