Unit-Linked Life Insurance

A life insurance product linked to an investment fund that combines life coverage with the option for a portion of the premiums to be invested in investment funds chosen by the policyholder. Unlike traditional savings life insurance, in unit-linked life insurance, the ultimate benefit and the value of the accumulated amount depend on the performance of the selected investment funds and the financial markets., exposing the policyholder to investment risk. The insurer undertakes to pay the value of the invested funds or a guaranteed minimum amount upon the occurrence of a specified event (e.g. death) or upon survival to the end of the policy term.