The evolutionary market development has led to the popularization of investment and endowment life insurance. “Clients experience the product by observing the dynamics of profitability of various investment instruments that they have chosen in the application or in their personal account. Therefore, by analogy with ILI savings products began to accumulate service functions so that customers could feel the product throughout its use. Consumers liked it and it became easier for banks to sell it,” says Vladimir Chernikov, the Ingosstrakh-Life CEO.
Having gone through the stages of development, Russian insurers offer their customers such varieties of products (based on endowment) that will accompany people throughout their lives. “Let us say, a family is planning to have a child. This means that the services for pregnancy management, childbirth, and in case of any pathology, IVF procedures are needed. Then, the child will study at school, university, which will also require expenses. Entry into adulthood (own apartment or house), and then what we call active rest (few people like the word “retirement”) are also better to financially be prepared for in advance,” the source explains.
Tax benefits have had a positive effect on the life insurance market. There is a deduction for such products in a neighboring country. “The base should not exceed 120 thousand rubles. It is possible to return no more than 15.6 thousand rubles a year,” says the Ingosstrakh-Life CEO.
The financial expert believes that endowment life insurance is a market for major social products that are important in terms of the financial security of each family.
Photos are from open sources.