Accumulative insurance in Europe: General questions

Many clients come to us with the same questions: What is accumulative insurance? What is accumulative insurance in Europe? Why is it needed at all?

In this article, the topic of accumulative insurance is disclosed as clearly as possible and its basic principles are described. Let's start with what it is.

Accumulative insurance is a type of insurance in which, roughly speaking, you invest in your future or the future of your relatives.

What is meant by this? Everything is very simple. You find an insurance company that offers this type of insurance and conclude an agreement with it. In this contract, you indicate the amount that you would like to receive at the end of the insurance period. Depending on this amount, you will pay a different amount per month. The larger the payment amount, the higher your monthly payment, respectively.

Why did they come up with this type of insurance? For example, you are now receiving some amount of money, and you want to later have your own small fortune, as they say, “have a good time in old age.” In the event of your death, you can write to whom you would like to transfer this money. You can easily rewrite your "heritage" to your children, and then you will be sure that they will be able to live, and perhaps even start a career with these funds. 

How does the accumulative insurance system work?

You are required to pay each month a certain amount of money specified in the contract. If something happens to you, then your family will receive the full amount and will not continue to pay for you. However, you must understand that you will overpay a certain amount of money during the entire time of your investment. The principle of operation resembles a "loan" in a bank. Only you first pay, and then they give you money. And each insurance company has its own % barrier, which you will overpay in any case.

Take care of your future and think about your heirs. Best wishes to you!