This type of policies has a relevant financial component.
The amount of the benefit for the policyholder is linked to the performance of an underlying financial asset. Unit-linked policies are linked to the performance of a collective investment fund or a pool of collective investment funds, whereas index linked policies are linked to the performance of a specific financial index. In the former case, the insured party’s premium is used by the company to subscribe to specialised funds on the stocks, bonds or balanced funds markets, depending on the client's risk tolerance. The latter thus indirectly participates in the financial performance.