We are often offered life insurance services. In every bank, whenever possible. For what purpose only? We insure our life in extreme cases when it is impossible to refuse,
for example, taking out a mortgage. And most often we do it with annoyance:
- firstly, because you don’t want to think about that very suddenly,
- secondly, if nothing happens, why pay and lose money.
The word insurance has acquired a negative character in our country, and we have forgotten or do not know why we need to insure life. They forgot that this is not just a way to protect yourself and your family from financial losses in unforeseen situations, but also an opportunity to ensure your old age and even earn money. And the choice of insurance must be approached as carefully as the choice of an apartment, work or place of study for children. Why? And how to determine if you really need it and what you can get from it?
In order to understand the issue, let’s start with the basics and consider what types of life insurance programs are divided into.
Risk life insurance and its features life insurance
Risky from the word risk? Maybe. But this is not always the case.
In risk insurance, the payment is made in the event of an insured event.
An insured event can be a lot: disability, injury, illness. And here it is very important to have support. This support is the insurance payments. With this money, you will be able to take a time-out, recover, and ensure a decent life for your family during your disability. Sounds good, right?
Of course, the worst can happen. It is scary to think about it, worse is only to leave children and loved ones without a livelihood. In this case, you, as a responsible person, with an insurance policy, will provide your family with a stable future. Money will not replace you, but it is another way of talking about your love and care.
Therefore, risk insurance is suitable not only for those whose life is associated with a dangerous profession or extreme hobbies, but also for ordinary people who responsibly approach the future of their family.
Words are good, but I want to hear numbers. How much to pay?
The payout is the amount at which you value your life. Million? Two? Five? The higher the amount, the more contributions, but the more you or your family will receive as a result. It’s up to you to decide.
But if your task is not only to protect your health, but also to save money for a specific purpose, for example, the future of a child or big purchases, then another type of insurance will do.
Endowment insurance & life insurance
Savings programs combine the processes of creating savings and insurance coverage.
We can say that this is an upgrade of risk insurance. Two-in-one cocktail. It combines payments in the event of an insured event and the accumulation of funds. Like a piggy bank or a deposit in a bank, only cooler. Why? Let’s figure it out.
The procedure is as follows: after the first installment, you have the right to insurance coverage for the risk of survival and the risk of death. We already know everything about the departure from life, we will not talk about it too often. A person is so constructed that he always believes in the best.
Imagine that insurance will never be useful to you, what in the end? All their life they paid money to an incomprehensible uncle, it is not clear why?
But no. In endowment insurance there is such a concept as survival. This is when you live to a certain age and nothing has happened to you. Better outcome insurance. And even if the word survival does not sound very good, it has a very pleasant meaning. It’s cool to get paid just for being in good health and secure a stable future for yourself.
So the best insurance method has been found? What could be better?
There are also disadvantages, for example, insurance premiums and income are not insured. But if your insurance company goes bankrupt, then you will still get your money, since any insurance company has a reinsurer. But it is necessary to take a responsible approach to the choice of an insurance company and carefully study the contract.
The endowment life insurance contract is concluded for 5 to 40 years or more. And the sooner you sign it, the more profitable.
What to do if in the process you realized that the conditions do not suit you and you can find better ones? There is a cooling off period during which a person can change their mind and take money without loss. As a rule, it is 14 days from the date of the conclusion of the contract. Another attractive feature of endowment insurance is that money cannot be withdrawn even by a court decision and is not divided in case of divorce.
Also, when concluding an agreement lasting more than 5 years, you can receive a social tax deduction in the amount of up to 15,600 rubles per year.
You will not be able to directly earn on them, but to increase the amount of payment under the agreement or reduce contributions completely.
And these are not all the ways to get profit, you can also make money. How?
Another type of life insurance is investment. This is a high return on investment opportunity and insurance coverage. The main difference between ILI and NSJ is that in NSJ income is guaranteed and specified in the contract. There are no guarantees in ILI. Only the invested amount will return 100%, the rest depends on the situation in the stock market.
The insurance premium is divided into two parts. One part earns, the second lies and waits for the insured event to occur.
Here you will not only provide yourself and your family with a stable future, but you can also earn money. Of course, if the market situation is in your favor. And in order not to burn out and not be left without funds, there is always a stable insurance part. Interesting?
Two more advantages are the special legal status and the right to tax benefits. It turns out that this is not an ordinary investment, but an investment with a privilege, because part of the invested funds can be returned using the social deduction for personal income tax. Also, money for insurance will never be confiscated from you, they will not be taken away in case of divorce, they cannot be seized and taken away in court. It is the most powerful asset protection out there.
What does life insurance give
So, we figured out the types of insurance, what is the result?
A voluntary life and health insurance policy will give you the following:
- confidence in the financial security of the family;
- help in the fight against injuries and serious illnesses;
- financial support and care for your loved ones in case of the worst;
- protection of accumulated assets;
- inviolability of money invested in programs of endowment and investment insurance.
The question still arises – why insure life?
Providing yourself and your loved ones with protection, confidence in the future, stability is everyone’s personal choice. If we compare life insurance and car insurance, because we often insure cars, but for some reason we do not have life, although the consequences of accidents without life insurance can be much worse than an ordinary accident, then it no longer seems so “optional”. Approach this issue responsibly and everything will change.
Remember the main thing:
- carefully study the contract and the insurer;
- for risk insurance, choose as the insured the one who earns the most, that is, the breadwinner;
- in the NSJ it is sometimes better to indicate the beneficiary of children and loved ones, and not yourself;
- earlier – more profitable, start at 30 or 40 and get more benefits.
Life insurance is both a reliable airbag, a piggy bank, and additional income. What in the end to give yourself and your family is up to you.