Cumulative life insurance (CLI) allows a person who finds himself in a difficult situation to financially cope with health problems, Stefan Vanchek, sales director of PPF Life Insurance LLC, told Izvestia. At the same time, life insurance is different from credit and investment life insurance (LIS). The expert explained their working principles.
According to the expert, the HOA, among other things, allows clients who are on sick leave to maintain their usual standard of living for themselves and their loved ones, without turning to relatives, friends, credit organizations and the state for help.
“The insurance payment will allow him to recover and return to work or provide for himself and his family in case of complications, disability,” Vanchek said.
As he emphasized, it is important that a person consciously takes care of his health by purchasing a life insurance policy with a wide insurance coverage.
“The principle of operation of HOA products is very simple: the insured enters into an agreement, determines the desired amount of savings, the term of insurance and the list of risks in which he will be entitled to payments. The wider the list of risks connected by the client, the more threats it is protected from. Based on these parameters, the size of the annual fee that is comfortable for the client is calculated. At the request of the client, the periodicity of the payment can be one, two or four times a year. From these contributions, the client’s savings are formed, which he will receive by the end of the program,” Vanchek explained.
In case of serious illnesses, injuries, the insurance will pay the client the funds with which he can pay for the treatment, restore health and continue to save further. So, he can save money for various purposes, including for an “airbag”, an apartment, education, etc.
“Credit and investment life insurance have completely different functions. For example, credit life insurance is designed to protect the client from emergencies in which he will not be able to repay the loan. For example, when leaving a life, loss of ability to work. In these cases, the insurance company will repay the loan for the client. But the bank will not take care of the health or recovery of the client, ”the expert specified.
At the same time, the main purpose of ILI is to generate income on capital. The yield of ILI policies is not guaranteed. In addition, as Vanchek said, under the ILI contract there are a limited number of risks: surviving until the end of the contract and death for any reason.
In turn, the UA is not designed for high profitability, but guarantees the insured person at the end of the contract the amount that he planned to receive.
“Thus, the UA is suitable for those who have savings, including those on deposit, and those who do not have a reserve for an unforeseen event and savings for the future. Such a policy will help the first category of people to keep funds on deposit, get the planned profitability, and those who have no savings at all, in emergency circumstances, do not take loans or sell something urgently. At the same time, by the deadline specified in the contract, all owners of such programs will have capital for plans and dreams, regardless of the situation in the country, the world or personal circumstances, ”Vanchek concluded.
Earlier, on March 29, First Deputy Prime Minister of the Russian Federation Andrei Belousov at a meeting with Russian President Vladimir Putin said that the Russian government had come up with a proposal to introduce an institution of shared life insurance in the country in order to develop the voluntary insurance segment. According to him, the new type of insurance will be classic insurance and will give Russians the opportunity to invest part of the insurance premium paid in selected instruments and assets to generate investment income.