Investment insurance combines the tasks of a bank deposit and risk life insurance. With such programs, there is no need to choose what to do with the money: save, invest, or spend on insurance and protect the family from trouble. We explain how investment policies work, what their advantages are and who is suitable for this type of investment.
What is investment insurance?
Investment Life Insurance (ILI) is a comprehensive product that combines classic life insurance and financial instruments to generate income. Both a bank deposit and investment insurance are based on the fact that the money deposited by the client works, and is not just in the account: it is invested in securities or precious metals, which are used in currency trading. The main feature of ILI is the ability to choose specific financial assets and the level of risk.
Is that how it works:
We determine a comfortable investment amount and term. Usually the contract is concluded for a period of 3 years, the optimal period is considered to be 5-10 years. During this time, the insurance company will hold the money in escrow. In most programs, it is impossible to withdraw the invested funds without fines and penalties. Therefore, it is better to determine in advance what part of the family budget can be used without pain.We choose a company and an investment strategy. The amount you choose is divided into the guaranteed part and the investment part. The insurance company will invest the first part in reliable financial instruments with fixed income: they will not give a large percentage of the production, but they will guarantee the full payment of the invested funds. The second part is aimed at the riskiest high-yield assets: they will bring in most of the dividends if the insurer’s calculation is justified. We add additional risks: for example, death as a result of an accident or traffic accident, partial disability or total . For them, the payments that exceed the principal sum insured are established separately, considering events insured by ILI as survival until the expiration of the contract or the death of the insured. In both situations, the company pays the insurance premium and the additional income it receives from your billing. The difference between the insured events is only in who the payment will be sent to: the client himself or the designated beneficiary in the event of a fatal outcome.
Advantages of investment life insurance
ILI combines the best of bank deposits, investment strategies and classic insurance. These are its main benefits:
Opportunity to increase capital without risk. The balance between the guarantee and investment parts of the investments gives the client the confidence that their funds will not be depleted due to a wrong strategy. Protecting the capital of yourself. If you don’t have enough willpower to put aside a large amount or get rid of unnecessary expenses, an agreement with an insurance company will help you maintain financial discipline. Savings security. ILI contributions are not available to thieves and fraudsters, do not suffer from inflation, are not divided during a divorce and are not subject to third-party claims, even by court decision. Support loved ones without unnecessary bureaucracy. In the event of the death of the insured client, the beneficiary specified in the contract will receive the payment immediately, without waiting for the right to inherit. It is important to note that the client may, at her sole discretion, designate any person, including non-relatives, as the beneficiary. Protection against sanctions. Insurance premiums cannot be seized or frozen, not even by court decision. Such amounts are not taken into account when dividing the property in case of divorce, that is, as long as the contract is in force and the insurance company manages the funds, the client’s spouse does not have the right to claim them. level of risk together with a professional consultant. The insurer offers different asset options and explains in detail what characteristics must be taken into account in each case. In some insurance companies you can even change your strategy every year: savings deposit, investment and insurance in the same contract. You do not have to take into account commissions and study the reputation of different companies, adapt to their rules, transfer money between different accounts. A reliable agreement. ILI is not affected by the Central Bank’s refinancing rate and other banking rules, so the insurance company will not change the terms of the contract unilaterally. Insurance premiums paid in the amount of up to 120,000 rubles per year are not subject to personal income tax. This means that 13% of this amount (up to 15,600 rubles) can be returned annually from the taxes you paid. To obtain them, you must apply to the insurance company or contact the employer’s accountant Unlimited Income. Unlike bank deposits, in investment insurance the amount of dividends is not guaranteed: the client can only be sure that he will definitely return his investment. But with a successful strategy, the amount of dividends can exceed expectations. Individual approach. Since ILI is a complex product, it can be assembled to suit your needs, just like a designer. You choose a currency, an amount and a convenient payment schedule, additional risks (in addition to survival and death, it can be invalidity, invalidity, accidents and traffic accidents), suitable financial instruments.
What tasks is it suitable for?
Protect money, increase financial discipline. Accumulate the required amount and increase it without financial risks. Provide for your loved ones in critical situation, create an air bag. Diversify your investment portfolio with the support of a professional. Protect savings from inflation, fraud and penalties
At IC “Renaissance Life” you can get detailed advice on investment insurance and create an insurance product that is right for you.
LLC SK Renaissance Life, OGRN 1047796714404.
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