Policies
that are Unit-Linked
A
unit-linked insurance policy is no guaranteed sum insured
payable except in the case of death. The insurer invests your
premiums in funds chosen by you.
The
amount payable under your life insurance policy depends on
the value of the investments in those funds at the time your
policy matures.
Insurers provide a range of funds to which your policy can
be linked. Ask for an explanation of the different funds so
that you understand the different risks and opportunities.
There is no guarantee of the value of the sum to be paid on
maturity.
The
potential benefit from a unit-linked policy can be greater
than from a with-profits policy. But there is the risk that
the eventual benefit could be lower. Remember that the value
of investments can fall as well as rise.
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