A new investment tool will appear in Russia from 2025 – equity life insurance
From January 1, 2025, Russians can use a new type of insurance – equity life insurance (ELI). This product combines classic life insurance and investment management through units of mutual investment funds (MIF). The law regulating ELI has already been adopted by the State Duma of the Russian Federation.
How does it work?
1. Under the ELI agreement, part of the paid insurance premium is used to purchase investment units of open or closed mutual investment funds. The client under the equity life insurance agreement is the owner of investment units of open or closed funds, as well as the insured person.
2. Asset management can be carried out by an insurance organization or a management company, if they have a license. The agreement specifies what part of the funds goes to insurance and what part goes to investments.
Features of the new instrument:
- upon the occurrence of an insured event, the client or his heirs are paid the insurance amount and the funds invested in the MIF;
- a list of transactions that can be made with shares has been established to avoid their misuse;
- to purchase shares of closed-end funds, the amount of the insurance premium must be at least 10 million rubles.
Shared life insurance has become available since the beginning of 2025, thanks to which Russians have new opportunities for investment and financial protection.