Risk life insurance provides financial protection against a large number of risks, such as diseases, accidents, traffic accidents, and work-related injuries. When such circumstances occur, the money or medical treatment is paid to the beneficiary.
Life insurance costs in such a product depend on how much the client values their life. The larger the amount, the higher are the contributions, but the more substantial is compensation.
Some programs provide financial security in the event of negative consequences of an accident (snake or tick bite) or certain types of activity (professional sports); others simultaneously cover several risks - injury, disability, death. The standard duration of the program is from 1-2 months to one year.
Endowment insurance is a comprehensive product that combines classic insurance with a bank deposit. The client puts life and health under protection for a pre-agreed amount.
The customer pays the specified amount in separate tranches over a certain period (from 5 to 40 years).
The primary objective of the program is to preserve the policyholder’s savings until the need arises, for example, when they need to pay for medical treatment or purchase residential real estate.
If an accident (death, disability, loss of labor capacity) occurs during the specified period, the insurer will contribute the unpaid portion of the funds by that time. In the absence of such circumstances (that is, survival), the client will return their money with interest.
The mechanism is the same as that of a savings product, but according to the contract, the insurance company has the right to invest the policyholder’s funds in promising projects. According to the agreement terms, profit is not guaranteed (unlike the endowment program) and in case of unsuccessful investment the client will not receive anything. However, with luck, the compensation will be greater.
According to the rules of life insurance, a stable part of insurance will save you from complete ruin. Companies offer various investment strategies and sectors. The choice is up to the user.
The insurance occasion is retirement. Until this point, the client pays premiums, which are invested by the insurer to make a profit. The money is returned with interest upon retirement. To prevent funds from depreciating, an indexing mechanism is in place.
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