What are Accumulative and Investment Life Insurance?
Accumulative life insurance provides protection against unforeseen events such as death or disability, while also allowing the policyholder to accumulate funds over the duration of the policy. These funds can be used in the future for various purposes, including retirement provisioning, children’s education, or creating a financial safety net for emergencies.
Investment life insurance, on the other hand, combines protection with investment. A portion of the insurance premiums goes towards providing insurance coverage, while the remaining part is invested in various financial instruments like stocks, bonds, or investment funds. This enables clients to not only protect themselves and their loved ones but also to earn additional income from their investments.
Benefits of Accumulative and Investment Life Insurance
Financial Protection: Offers protection from unforeseen circumstances such as death or disability, helping to maintain financial stability for oneself and one’s family.
Future Savings: Allows clients to accumulate funds throughout the life of the policy, providing a financial cushion for emergencies or to achieve specific financial goals.
Investment Opportunities: Provides the chance to invest in various financial instruments aiming for additional long-term income.
Tax Benefits: Recent changes in the tax laws of Cyprus require all residents to file tax returns but have also increased tax deductions from 1/6 to 1/5, corresponding to an increase from 16.6% to 20%. This presents additional opportunities for increasing income through tax refunds.
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Accumulative and investment life insurance are not just means of protection against unexpected situations, but also powerful tools for achieving financial goals. It’s important to choose a policy that matches your needs and life circumstances, as investing in your financial future is a step towards financial confidence and peace of mind.
