How does endowment life insurance work?

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The NSL works like this. The policyholder makes regular payments to the account. Depending on the terms of the agreement, monthly or quarterly. The company invests these funds in investment instruments. And the person receives income - as a rule, ≈ 2-4%.

This type of insurance is primarily aimed at saving money. And, of course, at insuring against damage. You shouldn't expect a high return. The interest received cannot be compared with a bank deposit. And with chinese thailand data a savings account or other investment instruments. If you are primarily interested in receiving passive income to the maximum, it is better to choose another way to increase capital. And for life and health insurance, issue a "traditional" policy. Perhaps, this will even be more profitable. The funds transferred by the insurance company will be used to compensate for damage in the event of an insured event. NSL is issued in order to collect a sum while simultaneously providing insurance coverage.

If an insured event does not occur by the end of the contract, the person receives the entire amount. It includes contributions and accrued interest. If an insured event occurs, such as an injury or illness, the insurance company pays compensation. The money will allow you to focus on treatment and recovery. Then it is easier not to worry about the onset of financial collapse due to temporary loss of ability to work. In a situation where an insured event ends in death, the beneficiaries receive payments. These are the persons specified in the contract. Close relatives of the insured - spouse or children.