What is Savings Life Insurance and how does it work?

What is Savings Life Insurance?

Savings Life Insuranceis a long-term contract that combines the security of life insurance with the ability to save and accumulate income over the years.This type of insurance serves a dual function:

• Financial protection in the event of unforeseen circumstances (eg death, disability, etc.);
• Accumulating capital that can be used in the future for personal or family purposes.

This is an investment in the future - both for you and your family.👨‍👩‍👧‍👦

How does savings insurance work?

The operation of this product is based on regular contributions by the insured.They are distributed in two main directions:

1. Insurance part– covers the risk of death, accident or illness;
2. Savings part– investing in long-term financial instruments (bonds, funds, etc.).

Upon reaching the term - you receive the accumulated amount + yield.
In the event of an insured event, the heirs receive the compensation.

The differences withinvestment insuranceconsist mainly in the yield structure and the assumed risk.

Main characteristics and principles

Savings life insurance is distinguished by a number of specifics that make it preferred:

• Long term– usually from 10 to 30 years;
• Flexible installments– monthly, quarterly, annual;
• Tax benefits– are possible according to the current legislation;
• Additional coatings– critical illnesses, temporary or permanent disability;
• Lifetime capital- security for antiquities, child's education, business purposes.

In case of early termination, a portion of the accumulated capital is usually returned, but with a possible loss of yield or fees.

🆚 What is the difference between savings and risk insurance?

Savings insurance iscombined product– protection + investment.While the risky one isonly protection, without a saving element.

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Criterion	Savings Life Insurance	Risk Life Insurance
Main objective	Savings + Insurance	Insurance only
Lifetime payout	Yes	No
Savings component

Criterion	Savings Life Insurance	Risk Life Insurance
Main objective	Savings + Insurance	Insurance only
Lifetime payout	Yes	No
Savings component	Yes - accumulation of amount	No - no capitalization
Contributions	Higher (because of the savings component)	Lower
Profitability	Yes - guaranteed or marketable	No - no yield
Access to capital	Possible under some conditions	Not applicable

Who is this insurance suitable for?

Savings Life Insurance is a product that meets the needs of people with long-term financial goals and responsibilities.Most often it is chosen by:

• Young parents– to ensure the future of children;
• Working people– who want to prepare for retirement;
• Families with education plans– raise capital for a university;
• Self-employed and entrepreneurs– for additional financial protection;
• Low risk investors– an alternative to bank deposits.

It offers a balanced approach between security and profitability, with controllable contributions and predictable results.

Item	Savings Life Insurance	Explanation
Essence	Defense + Saving	Combination of insurance and investment.
System	Regular installments + yield	Part of the money accumulates and brings profit.
Comparison with risky	There is capital, there is a payout	The risky one has no saving element.
Suitable for:	Families, young professionals	Security + opportunity for long-term capital.