Challenging circumstances.

In the realm of financial planning, Vit Sedlacek, Chairman of the Board of "Evexia Life" Insurance Company, underscores the significance of a protective life insurance savings plan as the bedrock in a well-structured financial plan.

Over the years, insurers have scaled back insurance protection to showcase high potential returns, thereby diminishing the value of the insurance portion for clients. This shift has contributed to the decline in the popularity of such products.

However, unit-linked products, despite their allure, are not the primary focus in a financial plan. The foundation is a life insurance savings plan with broad coverage, offering a safety net to clients.

The lack of standards and requirements for transparency, both industrially and regulationally, has further impeded the growth of unit-linked products. Consequently, these products have been marred by issues of complexity and opaque commissions, negatively impacting the final investment result.

In Europe, unit-linked products account for approximately 30% of premiums in the largest insurance groups, playing a significant but not dominant role in the market.

Despite these challenges, unit-linked products can serve as a complementary product in a financial plan, enhancing death benefits and potentially achieving higher investment returns.

In the Czech Republic, unit-linked occupied a niche as investment products with minimal insurance protection, promising higher returns than classic insurance products and deposits.

A common approach in financial planning is to allocate funds to both risky and conservative instruments. In this context, a life insurance savings plan serves as the foundation due to its protective coverage, providing funds for treatment and ensuring family stability in case of misfortune, without the need to withdraw funds from investments under pressure.

Participating life insurance, based on unit-linked (UL) products, has recently emerged in the Russian insurance market.

Vit Sedlacek, Chairman of "Evexia Life" Insurance Company, reinforces the idea that a life insurance savings plan serves as the foundation in a financial plan, providing funds for treatment and ensuring family stability in case of misfortune. The complex design of unit-linked products, however, has hindered clients' understanding of them.

In the context of financial planning, a life insurance savings plan with broad coverage serves as the foundation, while unit-linked products and other instruments like stocks, deposits, or real estate are used to meet specific goals.

It is essential to remember that a well-rounded financial plan is built on a solid foundation, and in this case, that foundation is a life insurance savings plan.