Why insure your life
Life insurance serves two purposes: it protects the family from the financial consequences of the breadwinner's death or disability, and it helps to save towards a specific goal — children's education, retirement, a major purchase. The type of programme depends on the goal.
Types of life insurance
Term (risk) life insurance
The policy runs for a set term and covers death, disability and sometimes injuries and critical illnesses. If nothing happens during the term, the money is not returned. In exchange, the cover is relatively inexpensive: a small premium buys a large sum insured. It suits people with dependants, a mortgage or loans.
Endowment life insurance (NSZh)
The client pays regular premiums for several years — usually at least five. At the end of the term they receive the sum insured with guaranteed growth and possibly additional investment income. If an insured event occurs during the contract, the beneficiaries receive the payout.
Investment-linked life insurance (ISZh)
Part of the premium goes to insurance cover and part is invested in a chosen strategy. The return of premiums at the end of the term is usually guaranteed, but income is not and depends on the market. ISZh is a complex product; before buying, it is important to understand what the money is invested in and which charges are deducted.
Endowment policy or term insurance plus a deposit
A common question: which is better — an endowment policy or a term policy plus a bank deposit? Let's compare.
| Endowment (NSZh) | Term insurance + deposit | |
|---|---|---|
| Family protection | From the first premium | Under the term policy |
| Return | Guaranteed, usually moderate | Deposit rate, depends on market rates |
| Early exit | Surrender value — often less than premiums paid | Deposit can be closed with loss of interest |
| Discipline | High — premiums on schedule | Up to you |
| Protection of funds | DIA guarantees from 1 January 2027: up to RUB 2.8 million (up to RUB 10 million for death) | Deposit insurance (DIA) up to RUB 1.4 million |
An endowment policy suits those who want discipline and protection in one product and are ready to keep the contract to the end. A term policy plus a deposit is more flexible and transparent.
Tax benefits
From 1 September 2026, premiums under voluntary life insurance contracts concluded on or after 1 January 2025 for at least 10 years for yourself, family members or close relatives count towards the long-term savings deduction (Article 219.2 of the Tax Code). The limit is RUB 400,000 a year, shared with the long-term savings programme, non-state pension provision and type-3 individual investment accounts; up to RUB 500,000 for contributions in favour of children. The previous social deduction (contract of 5 years or more, RUB 150,000 limit) can only be claimed for premiums paid in 2025 and earlier years. More in "Tax deduction for DMS and life insurance".
Another advantage: a payout to a beneficiary under a life insurance contract is generally not part of the estate. Loved ones receive the money without waiting the six months required to take up an inheritance.
Protecting your rights
Cooling-off period
Under Bank of Russia rules, within 14 calendar days of concluding a voluntary contract you may cancel it and get back the premium paid (in full, or minus the part for the days elapsed if cover has already started). This applies to both endowment and investment-linked policies.
Guarantee of payouts
From 1 January 2027, life insurance contracts will be covered by a guarantee scheme for insurance payments (Law No. 477-FZ of 26 December 2024) operated by the Deposit Insurance Agency (DIA). It will protect clients if a life insurer loses its licence: up to RUB 10 million for death-related payouts and up to RUB 2.8 million for other payouts. The protection will also extend to earlier contracts still in force on that date.
Surrender value
If you terminate an endowment or investment-linked policy early, you receive the surrender value. In the first years it may be significantly less than the premiums paid. The table of surrender values must be in the contract — study it before signing.
How to choose a programme
- Define your goal. Family protection — a term policy. Saving — an endowment policy. A chance of higher income with risk — investment-linked insurance.
- Work out the amount of cover. A benchmark is several years of family income plus outstanding loans.
- Check the insurer — its life insurance licence in the Bank of Russia register.
- Study the exclusions — for example, events in the first months of the contract or dangerous sports.
- Assess your financial discipline. If you are not sure you can pay premiums for many years, choose a shorter term.
- Don't confuse insurance with a deposit, especially if a bank offers you a policy instead of a deposit.
Additional protection
If your main risk is injury and temporary incapacity, a personal accident policy is cheaper. It can complement life insurance.
More about the products in the Life insurance section. Polis Re specialists will help you compare programmes from different insurers — submit a request.