Savings life insurance
The product in brief
For individuals
Savings life insurance: capital by a target date and protection for your family
A savings policy does two jobs at once. The first is to set money aside steadily for a specific goal: your children’s education, your own retirement, a major purchase. The second is to protect your loved ones: if something happens to the insured person while the contract is in force, the family receives a payout instead of being left with an unfinished plan. The calculator above gives a preliminary estimate, and the specialists at the Dynasty insurance agency will help you compare programmes from several licensed insurers and choose the right one.
How a savings contract works
You choose the term, the currency of the programme and the amount of the regular contribution — monthly, quarterly or annual. The insurer invests the funds and credits income on them. At the end of the term you receive the accumulated amount, and if an insured event occurs during the term, the payout goes to the beneficiary. Some programmes also include accident or disability cover, or a waiver of contributions if you lose the ability to work.
Tenge programmes
- Contributions and payouts in the national currency
- Well suited to goals within the country: study, housing, retirement
- A guaranteed return is fixed in the contract
- A good fit for people who earn in tenge
Foreign-currency programmes
- Amounts are linked to a foreign currency
- Help preserve the value of savings when exchange rates fluctuate
- Convenient for goals abroad, such as studying
- The guaranteed rate is usually lower than in tenge
Guaranteed return and additional income
Most programmes specify a guaranteed rate in the contract — the minimum income the insurer credits regardless of market conditions. On top of that, additional investment income may be credited, but it is not guaranteed and depends on how the assets perform. When comparing offers, focus primarily on the guaranteed part and treat any additional income as a possible bonus.
Term and surrender value
Savings insurance is designed for the long run — usually several years or more. If you terminate the contract early, you receive the surrender value. In the first years it is usually noticeably lower than the contributions paid, because at the start of the term the insurer bears the costs of setting up the contract and providing risk cover. A surrender value table is attached to the contract — study it before you sign.
Please note. Choose a contribution you can comfortably pay for the entire term. Early termination is the most common way to lose part of your savings. Many programmes allow you to pause payments or reduce the contribution — check these options in advance.
Tax advantages
Kazakhstan’s legislation provides tax benefits for certain types of savings insurance contracts, including the possibility of a tax deduction for contributions paid if certain conditions are met. The conditions, limits and procedures change from time to time, so check the current requirements when choosing a programme and with your tax adviser.
Savings insurance or a bank deposit
| Criterion | Bank deposit | Savings policy |
|---|---|---|
| Main purpose | Preserving money and earning income | Saving by a date and protecting the family |
| Insurance cover | None | Throughout the contract term |
| Access to money | Usually flexible | Early access via the surrender value |
| Discipline | Depends on the depositor | Regular contributions on a schedule |
A deposit is convenient for a short-term reserve, while a savings policy suits a long-term goal that matters even if circumstances turn unfavourable. The two instruments do not exclude but complement each other.
How to apply
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Preliminary estimate
Enter your age, term, currency and contribution amount in the calculator.
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Choosing a programme
We request terms from several insurers and compare guaranteed returns, surrender values and covered risks.
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Contract
You fill in the questionnaire, sign the contract and pay the first contribution.
What to check in the contract
- Guaranteed rate. Its level and the currency of the programme.
- Surrender value table. How much you would receive on termination in each year.
- Set of risks. What is covered besides survival to the end of the term.
- Beneficiary. Who receives the payout in the event of an insured event.
- Flexibility. Whether you can change the contribution, take a pause or extend the term.
Who savings insurance is for
The programme is especially useful for parents who want to be sure of having money for their child’s education by a certain year, even if something happens to them. It is chosen by people with a regular income who find it hard to save on their own, and by those who are thinking ahead about extra income in retirement. A savings policy makes sense when the goal is several years or more away and the family already has a reserve for unexpected expenses.
- Parents. Capital for children’s education by the right date.
- Working professionals. A supplement to a future pension.
- Breadwinners. Protection for loved ones throughout the saving period.
Start with an estimate
The calculator above gives you a guide to your future capital. Leave a request and Dynasty’s specialists will prepare a comparison of programmes and answer your questions before you sign.
This material is for information only and is not a public offer or individual financial advice. Final terms, returns and payout amounts are determined by the contract and the insurance rules of the specific insurance company.
Frequently asked questions
What term should I choose for a savings policy?
It is best to link the term to your goal: for example, the year your child starts university or the age at which you want to retire. The longer the term, the longer income works on your savings. Short terms are less efficient because of the insurer’s costs at the start of the contract.
Should I choose a tenge or a foreign-currency programme?
If your future goal and expenses will be in tenge, a tenge programme makes more sense. If you plan expenses in foreign currency, such as studying abroad, a currency programme reduces exchange-rate risk. You can also split contributions between two programmes.
What happens if I stop paying contributions?
Usually the contract can be converted to a paid-up mode with a reduced sum, or terminated with payment of the surrender value. Many insurers give a grace period for payment. The specific options are set out in the insurance rules.
Is the return on savings insurance guaranteed?
Only the rate expressly stated in the contract is guaranteed. Additional investment income depends on how the assets perform and may differ from projections. That is why programmes should be compared on their guaranteed part.
Who receives the money if something happens to me?
The payout goes to the beneficiary you named in the contract. If none is named, the payout is usually made to your heirs in the manner established by law. The beneficiary can usually be changed during the contract term.
Can I get a tax deduction for contributions?
The legislation provides tax benefits for certain types of savings insurance if conditions are met. Requirements and limits change, so check them when choosing a programme and with a tax adviser.
How accurate is the calculator’s estimate?
The calculator gives a preliminary estimate based on typical parameters. Final amounts depend on the specific insurer’s terms, the health questionnaire and the risks selected. We will prepare an exact offer after you submit a request.