The difference between savings and other types of insurance

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He signed a five-year contract with an insurance company. He expected that by the end of the term he would have 3 million rubles. The man made contributions for four years. Then he fell ill and died. A fatal outcome was specified in the contract with the insurance company as an insured event. After that, the insurer took over the payments. At the end of the contract, the deceased's daughter received 3 million rubles. Read also Earn money by selling the course "Profession of an insurance agent" The difference between savings and other types of insurance NSL is confused with investment. They are similar: some even believe that investment is a type of savings. But, in fact, these are not the same instruments. An investment policy is much more similar to a regular insurance product. The one that is designed to increase capital.


Of course, it also has the ability to receive compensation in the event of an insured event. Therefore, life and health protection is present in any case, otherwise there would chinese uk phone number list be no point in such a policy. The purpose of life insurance is to save money for a specific purpose. The purpose of investment insurance is to obtain profitability. The profit with such a policy is higher. But it is necessary to take into account that the risk is also higher. Do not worry about the loss of funds: you will return the invested amount in any case. This is how investment life insurance (ILI) works. A person has free money. Now he needs it to "work" and not lie dead weight while inflation eats it up. Of course, there is NSLI, but its yield is low. But what if inflation in the country is high? After all, we use rubles for calculations.


Let's imagine that during a crisis on the market the ruble will depreciate, but our purchasing power will fall. Then for the same amount of money it will be possible to buy a smaller quantity of goods. Having thought about all this, a person decides to invest in an ILI. In this case, the insurance company sort of manages the assets received from you. It invests them in profitable financial instruments. Of course, the insurer, wanting to earn and increase the client's capital, is unlikely to invest in high-risk instruments. For example, shares of startups. Even when issuing an ILI policy, the insurance company tries to give preference to government bonds, precious metals, securities of the largest Russian companies, etc. And the insurer will tell the policyholder what investment strategy it has chosen. With this type of insurance, the insurance company has a greater choice of financial instruments.