Life insurance programs – how to choose?

Life insurance programs – how to choose?

Now on the financial market various life and health insurance programs are presented – both Russian companies and foreign ones.

This article will introduce you to affordable policies and help you choose the best contract.

1. Overview of available programs Life insurance contracts can solve a very wide range of tasks – from your financial protection to asset security and tax planning. In this brief overview, I will describe the contracts available for use, and their main features. To get to know the topic better, please download a PDF review of the solutions available in Russia:

1.1 Life insurance risk policy Such tools are called so because they only protect a person from risk, but they do not accumulate money inside the policy. These insurance programs provide financial security for the family, and are very inexpensive. And if your task is to ensure the financial stability of those close to you in case of force majeure with a minimum budget, then such a solution will suit you best. An example of such contracts is accident insurance policies , or foreign term insurance contracts .

1.2 Endowment life insurance program These agreements are capable of providing a person with protection, and at the same time create capital for him. See how this policy works: If your task is to provide close relatives with an adequate level of financial security , then solving this problem with the help of funded life insurance will be too expensive. Because the main part of the contribution will be accumulated, and only a small part will provide protection. If you need a high level of protection, then choose risk insurance. If you want to create capital, then there are more convenient tools for this than accumulative life insurance.

1.3 Investment life insurance IIS is a one-time contribution contract that allows you to invest the funds contributed. It also provides protection the size of a down payment. At the request of the legislation, the insurer is obliged to guarantee the safety of the funds deposited in investment life insurance programs. And so the money will be invested very conservatively. As a result, the yield on these contracts is even lower than on the bank deposit. It makes no economic sense to use ILI as a protection tool. Because the purpose of insurance is to get a large payment for adverse events in case of adverse events. And in this agreement, the payment is equal to the contribution to the contract. As a result, this contract is not effective either as an investment tool or as an insurance plan. Therefore, I do not recommend using it.

1.4 Unit-linked programs Only foreign companies are now able to offer such plans to Russians. Due to a number of legislative restrictions, domestic companies are not yet able to offer similar products. Such plans are investment instruments in the insurance cover. And they are effective tools for investing in global financial markets. Download my PDF report with an overview of such contracts: Name e-mail * Get a PDF Review If you are faced with the task of creating personal capital through regular contributions, or effectively investing large savings, consider such plans.

1.5 Universal Life Insurance Universal life insurance programs are also able to offer you only foreign companies. Such contracts are able to provide high insurance protection for a person, and at the same time serve as a conservative funded plan with tax benefits. However, for Russians, foreign companies are willing to open such policies only for large insurance amounts. Therefore, they are rarely used.

2. Comparison of life insurance programs You can compare the policies available to us for different parameters. However, in practice, it’s important to understand what the best insurance program will be for your task. If you are interested in the topic of life insurance, then most likely you need a protection tool. Or, an investment plan in a life insurance shell. If you need to provide a person with high insurance coverage, consider the term or life insurance of a foreign company Unilife. Today it is one of the most effective solutions in the field of life insurance in Russia. If you need an effective investment plan for creating capital through regular contributions, or for investing large capital – use unit-linked contracts. Depending on your own risk profile, you can choose plans with capital protection or contracts with an open architecture for investing in arbitrary assets.

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