In lay terms, ILI is the following:
- The ability to receive payments in case of insured event - the death of the insured (the beneficiary receives the money);
- A 100% guarantee of return of invested funds - when the contract expires and the insured event does not occur, the invested funds are returned in full;
- Earning capability: the money invested in ILI is invested by the company with a guarantee. If the investment index grows, the investor will earn, and if not, the money will still be returned in the amount for which the contract was concluded.
“The goal of ILI is to receive investment return with full capital protection. The return will depend on the asset dynamics and is not guaranteed. But the asset is clearly stated in the investment declaration and the client can independently choose it at the time of insurance agreement conclusion,” Boris Borzunov, Director of Savings Products at Rosgosstrakh Life Insurance Company, told RBC Investments.
Endowment is an insurance product that simultaneously allows you to insure life and health and save money with capital protection.
Under endowment agreement, the policyholder regularly makes payments that the company invests, and the policyholder receives interest. The interest rate can be specified in the agreement for the entire term of its validity, or it can be annually determined by the insurance company.
If the agreement expires and no insured events occur, the policyholder receives all the money contributed and a certain percentage of return. If an insured event occurs, the policyholder (or beneficiary) receives the entire insurance amount, regardless of the contributions made.
Source: https://quote.rbc.ru/news/article/66b46bd29a794726644df0a1?from=copy
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