Two Russian insurance companies, Renaissance Life and BCS Life Insurance, have launched Bitcoin-linked Investment Life Insurance (ILIP), according to a local media report on July 2.
The report says that the innovative policy allows investors to get in touch with BlackRock’s Ishares Bitcoin Trust (IBIT), the largest Bitcoin ETF by managed assets.
These ILIPs are designed for high net individuals who want to benefit from Bitcoin’s price movements without directly holding digital assets.
The policy is associated with Bitcoin futures contracts trading on the Moscow Exchange (MOEX), providing an alternative way to invest in booming asset classes.
How policy works
The provision of Renaissance Life, part of the “Cryptocapital” program, requires an investment of at least 1.5 million rubles (approximately $19,000) and lasts for two years.
If the value of IBIT-linked futures increases significantly, such as Bitcoin doubles its value, investors can earn up to 2.4 million rubles (over $30,000) before tax.
However, if the market is insufficient and Bitcoin drops, initial capital will be protected. Renaissance Life CEO Olegkiselev emphasized that policyholders will collect at least the full amount.
Meanwhile, BCS Life Insurance offers similar products with a length of three years and a minimum input of 3 million rubles.
Unlike its rivals, BCS allows portfolios to be rebalanced during the policy period, giving investors more flexibility to adjust their asset allocations as market changes.
Bitcoin’s growing interest
These developments come amid growing demand for regulated financial products that provide exposure to Bitcoin.
Other insurers are taking advantage of this trend to provide clients with Bitcoin-related investment products.
For example, insurance, last year launched Bitcoin-backed life insurance, allowing policyholders to borrow Bitcoin against insurance policies without fulfilling capital gains tax. However, the loan balance will be deducted from the death benefit when the policyholder passes.
This product shows a surge in interest in Bitcoin-backed financial products, particularly over the past year. The US administration has adopted a pro-crypto policy, with Bitcoin prices exceeding $100,000.