Conclusion of the contract savings insurance can provide income in retirement, an opportunity to pay for a college education, the accumulation of money is needed to make a down payment of the purchase mortgage.
There are two types of insurance savings: mixed life insurance and pension insurance.
Mixed life insurance policies provide for the payment of the sum insured when the insured event or death of the insured, as well as at the expiration of the agreement. They are good because they not only allow us to make savings, but also provide confidence that when an illness or accident, the insurance company will reimburse the costs of treatment, and in the case of death, will receive support from relatives of the insured.
Under the policy of insurance savings can accumulate the amount needed for a child in high school. By entering into such a contract, you can either pay the premium at a time, or make it in small installments over the term of the contract.When the child reaches the age specified in the contract will be made full payment of the insurance. This type of insurance also allows signing an agreement for the long term, save enough money to buy more real estate.
In contrast to the mixed contract of life insurance, pension insurance contract provides for certain insurance benefits when the insured person reaches retirement age. If the death of the insured person has come up to the specified age insurance payment will be made to the beneficiary under the contract.
Pension insurance contract may provide for three different schemes of payment of insurance:
- A lump sum payment for the entire amount of a certain age;
- The monthly payment of the sum insured for a specified period from the date of retirement;
- Monthly payment of the sum insured from the time they reach retirement age during the whole life.
Voluntary pension insurance is used by citizens in order to increase the size of the pension that they receive in the state pension insurance. In addition, in contrast to the state pension insurance, voluntary pension insurance contract provides that the payment can receive not only the insured is a citizen, but his family members or other beneficiaries specified in the contract.
Typically, insurance savings contracts are for a fairly long period during which the insured person pays regular premiums. Insurance benefit under such contract is carried out either when the insured event, or at the end of the contract period. At the end of the contract period the insured person receives a much larger amount than the contributions that have been made, as during the period of the insurance company invests the proceeds to make a profit and pays interest on the insurance premium. (article-insurance)