There are different kinds of life insurance: guaranteed-interest life insurance (class 21) and investment-type insurance (class 23). These life insurance policies are therefore not just an insurance policy, but also a savings and investment solution. The big difference between the two is that a class-21 product comes with limited risk and guaranteed interest on every deposit made over a set period, while a class-23 policy is invested in underlying funds. An investment-type insurance policy offers a chance of a higher return, but of course this is not without risk. The life insurance component is largely similar for both products, however, as each can be used for inheritance planning.
Please read on to find out what you can do with a life insurance policy when it comes to inheritance planning.