Investment life insurance: types, description, profitability and reviews

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Almost everyone thinks about their future one way or another. Now there is a fairly large amount of providing it after a certain amount of time, and one of them is life insurance. The investment income of this approach, which will be discussed in the article, allows you not to lose earned funds, but to receive additional amounts.

General information

What is endowment investment life insurance? This tool is simultaneously a symbiosis of two directions. It combines both insurance and investment. Unfortunately, it is not possible to attribute this tool to one thing.

What is he? In fact, this is a hybrid of classic endowment life insurance, to which an investment component is added, presented as mutual funds. This approach involves placing part of the portfolio (if the client wishes) in more risky and at the same time profitable financial instruments.

What is interesting about this combined approach?

Among the very first advantages, the presence of standard insurance coverage should be noted. What does it mean forpractice? If a person decides to use such a combined instrument, then he receives insurance to cover the initial investment and the amounts received as a result of the investment. This aspect is taken lightly by many. Although, admittedly, accidents happen quite often.

Insurance programs are aimed at combating their consequences. They help to maintain a stable financial position even under the most unforeseen circumstances.

The following task is quite popular: if a person lived to the end of the insurance period, and he did not have any problems, then he will receive the amount paid and the interest that has run up on it. That is, money is not lost, and there is protection.

At the same time, there are many nice bonuses that can change in different companies. The most popular is that in the event of a client's disability, the insurance company makes contributions for him, so that, in the end, he receives all the necessary payments.

Yield

Although various savings programs can also boast of the previous benefits. But in our case, there is still a small feature. And it comes down to income. Thus, insurance savings programs allow you to receive approximately 5-6%, which in our conditions does not even cover inflation. This is due to the conservative allocation of funds. And there is no desire to save like this for decades.

This is where investment life insurance comes in. Rosgosstrakh orother company, it doesn't matter. Only the mechanism itself plays a role. Thus, a significant part of the funds goes to investment instruments. Their ratio in this case is usually 1:4. That is, for every unit of money that goes to the insurance part, four are invested.

Yield between investments can be written in approximately the same ratio. At the same time, one should be careful about those companies that offer income one and a half times higher than bank deposits and more.

Caution

Why is it necessary to be careful about those to whom money is transferred? A feature of investments is that they are more profitable than deposits, but at the same time they are more risky. But first things first.

If too high interest rates are offered (30 or more), then there are two options: these are either scammers or organizations that invest in very dangerous assets. Yes, there is also such that a profit of 70, 100 and 300 percent per year is possible. But the probability of burning out here is also very high. Therefore, if there is a desire to save your money and not lose it, then you should focus on indicators in the region of 20-30 percent. Then there will be a low probability of losses, moreover, it is insured, and a solid capital will be collected by the end of the term.

To avoid falling into the hands of scammers, it is always worth asking about where the money is being invested, asking for supporting documentation and, of course, checking it through other channels. You should also carefully study the life insurance investment contract, and ifif in doubt, consult an outside lawyer (preferably not the one across the street from the company).

Peculiarities in the Russian Federation

Most interested in the legislative aspect. In the Russian Federation, such a fairly useful tool as investment life insurance is practically not developed. Of course, there are basic prerequisites for work, but, alas, it is still far from complete and clear design.

In order to circumvent the law, two contracts are concluded. One regulates the issues of the insurance, and the other - the investment program. And then a certain percentage of funds goes to the required direction.

For a novice investor

It's safe to say that we live in a time when financial markets are quite unstable. Therefore, novice investors face a serious dilemma: what to choose? Investment life insurance is suitable for those who want to invest in their future, and not receive pennies from bank deposits, and at the same time do not want to take full risks. Therefore, you can use such a balanced and cautious approach.

Let's talk about investment life insurance as an example. Sberbank. The profitability of one of the largest representatives of this type of service in the territory of the Russian Federation allows you to increase real, and not nominal, capital up to 15 percent per year. Of course, this is in the optimal perspective. It may be that it gives an increase of only 5%, but this is already an increase.

It is worth noting that the investment life insurance program is still designed for quite significant amounts. So, you need to accumulate at least 3 months of income on the deposit in order for the application to be considered.

Why is there such an inconvenient restriction? The fact is that the market is constantly going through periods of growth and decline. And the probability of catching luck exists in the medium term. And for this you need to wait. And working with small amounts and deposits in such cases is extremely inconvenient.

What do people think about this?

So, we already know quite a lot about investment life insurance. Reviews will complement the existing picture. If you look at the information provided on the Internet, then most people evaluate this financial instrument positively.

First of all, they mention insurance. This is followed by rave reviews of many speci alty company investment programs. So, they additionally break the investments of their clients into several parts. One goes to very reliable investments like precious metals, the other goes to stocks of companies that are doing well, the third part goes to securities with a (slightly) increased risk and return.

Also note the preferential taxation. Thus, in the Russian Federation, taxes are levied only on that part of income that exceeds the refinancing rate of the Central Bank.

Of course, manyRemind them that there are risks involved. First of all, you should strive to bypass the scammers by the tenth road.

Conclusion

Financial instruments are constantly being improved. As a result of the improvement of what is, investment life insurance arose. This approach ensures maximum benefit for all businesses involved in it. But you should not concentrate on one thing and in one company. It is good if the funds are dispersed in two or three organizations. And even better - if their number is about five or six.

But in order to participate, you need at least some start-up capital. Therefore, you should take care of good income. This will be facilitated by a well-honed financial culture and qualifications as an employee. And this is achieved through self-education and constant self-improvement.