Three cases when it is worth taking out life and health insurance

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Life and health insurance is mandatory when applying for a compulsory medical insurance policy, as well as for obtaining a visa when traveling abroad. In what other cases is it beneficial to issue a policy voluntarily?


When life insurance is beneficial.

Life and health insurance is mandatory when applying for a compulsory medical insurance policy, as well as for obtaining a visa when traveling abroad. In what other cases is it beneficial to issue a policy voluntarily?

In what cases it is not necessary to issue a policy, but it is practical

Voluntary life insurance programs are often imposed by insurers as an add-on package. Sometimes insurance is already included in the cost of the service, but the client can refuse before signing the documents.

When the policy is useful:

  • when receiving long-term loans;

  • when traveling in Russia or abroad (where a mandatory policy is not required);

  • to participate in investment programs of insurance companies.

Long-term loans

It is beneficial to take out insurance if the loan term is more than 10 years.

What the insurance includes:

  • death of the borrower;

  • getting a disability.

If a client takes out a mortgage loan, the availability of a voluntary life insurance policy guarantees more favorable conditions. At Sberbank , if the borrower refuses to buy policy upon receiving a mortgage, the base rate will increase by 1%. With an estimated interest of 8.5%, the actual rate will be 9.5%.

We will calculate the benefits of obtaining a life insurance policy for mortgage lending with the following parameters:

  • loan amount: 5 million rubles;

  • term: 30 years;

  • borrower: woman 30 years old, participation in the transaction 100%, profession without increased risk, without chronic diseases;

  • object: apartment;

  • creditor bank: Sberbank.

Interest calculation for the first year:

  • At 8.5% – 425 thousand rubles.

  • At 9.5% – 470 thousand rubles.

The amount of overpayment for the first year will be 45 thousand rubles, for 30 years – almost 1.3 million rubles.

The price of a life insurance policy on a mortgage loan at the given parameters is 10-15 thousand rubles in the first year (according to calculations using the calculator IC “AlfaStrakhovanie”), that is, 2-3 times less interest overpayment. The cost of insurance depends on the balance of the debt, so it will decrease annually. In the event of the death of the borrower, the family will not lose their home, and the insurance company will close the loan.

Travel insurance to visa-free countries

Even if it is not necessary to issue a travel policy, it is worth doing, as it will cover the costs of receiving medical care abroad.

Minimum insurance coverage:

  • provision of emergency medical care;

  • diagnostics and treatment;

  • transportation to the hospital, home;

  • provision of emergency dental care;

  • repatriation in case of death.

Additionally, the policy may include coverage of expenses related to childbirth, exacerbation of chronic diseases, animal attacks, road accidents, vehicle crashes, burns, frostbite.

If you are going to do extreme sports, traveling with children, expecting a child, or your path lies in a country with unusual living conditions (low-quality drinking water, the presence of poisonous snakes), you should not risk your health.

Without a policy, you will have to pay for medical services at your own expense. So, in South Korea, a doctor’s consultation can cost $ 50 and more. The price of the policy for two tourists, for a period of 5-6 days with an insured amount of 500 thousand rubles. about 900 rubles (according to the calculations of IC “Alfa Insurance” ).

Why it is worth getting a policy:

  • The high cost of medical services abroad;

  • tourists walk a lot, there is a risk of sprains and injuries.

Participation in programs of endowment and investment insurance

Accumulation programs will allow you to collect a large amount with simultaneous insurance coverage, investment programs – to get additional income.

How the savings programs of insurance companies work:

  • the participant makes contributions at a specified time, for example, every month or once a year;

  • upon the occurrence of an insured event, the insurer shall indemnify the losses to the policyholder or his relatives. The amount of compensation usually exceeds the number of deductions;

  • if the insured event does not occur, at the end of the term the policyholder receives the premiums paid back, sometimes with a small profit.

Endowment life insurance contracts can be drawn up for the long term. IC “Ingosstrakh” concludes contracts up to 35 years, IC “Sberbank Insurance” – up to 30 years.

What risks are covered:

  • disability;

  • death (you can designate a beneficiary);

  • survival.

The insurance can include disability, cancer diagnostics, but premiums for paying additional risks are not refundable.

Investment life insurance contracts are concluded for a period of 5-7 years. Clients’ investments are allocated to the guarantee (provides a 100% return on investment in any market situation) and investment funds (to generate income).

Insurance cover:

  • leaving life for any reason;

  • death by accident.

The insurance indemnity is 100% of the paid insurance premiums, increased by the investment income received.

For example, the VSK Lifeline program offers its clients three investment strategies:

  • with interest payment at the end of the term;

  • with an annual payment of income;

  • with a fixed income rate.

Why take out accumulative and investment life insurance:

  • save up for a large purchase;

  • start investing and get a stable income;

  • protect loved ones if the policyholder dies or becomes disabled.

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