Did you know that you can also save with your Postal Life Insurance? When you think about a policy of this type, the frequent thing is to relate it to the risk of death and disability. However, its presence in savings is less known, despite its proven long-term profitability. In addition, it has many advantages over one of its traditional competitors: bank deposits.
Nearly 10 million Indians save through their Postal Life Insurance. They are very appropriate products for people who do not want to take risks, since, unlike bank deposits, they can guarantee returns for almost any term (even more than 20 years) and are the only ones that can return the accumulated savings in the form of annuity, which only ends when the beneficiary dies, live as long as you live.
What are the Advantages of Savings Insurance Against Bank Deposits?
Saving Postal Life Insurance builds a heritage for the future but must also cover the death or disability of the owner. Their duration can be indefinite and they are more focused on an investment horizon in the medium and long-term, they adapt to the needs of the client and the profitability they offer can be fixed or variable.
The keys to understanding savings insurance
- What are risk coverages?
They are the most common form of Postal Life Insurance, those that offer compensation in case of death or disability of the insured. They serve to guarantee the economic future of widowers or orphans or people who become disabled and can be contracted alone or combined with savings insurance.
- Can the money deposited in a savings insurance be lost?
Among all the savings insurances marketed in Spain, more than 90% offer an interest-to-maturity guarantee. Only about 10% is formed by ‘unit-linked’ insurance (linked to assets) in which the insured chooses where to place his savings, taking all the risks inherent to that investment.
- What does it mean that an insurer has participation in benefits?
If the insurance in which this policy is contracted has a profit share, the client will receive, in addition to the guaranteed minimum return, an additional return. This happens when the insurer obtains a higher performance in its action than the one that committed.
- What is the relationship between insurance companies and pension plans?
Pension plans are long-term savings products designed to cover retirement. Insurers can manage this type of savings. In fact, one-third of the assets of pension plans in India are managed by them. For example, Indiabulls Home Loan is different from other insurance companies. Click on to know more!
- How can you recover the accumulated savings in insurance?
There are two fundamental forms. The first is in the form of capital and the accumulated savings are received at one time. The second is in the form of income, which is divided into periodic payments (usually monthly). The great advantage is that they can be charged in the form of an annuity and the payment is received while the beneficiary lives, even if his money runs out, a risk assumed by the insurance company.