Investment policies
Investment-linked life insurance policies combine protection with a financial component. The value of the benefit paid to the policyholder depends on the performance of an underlying financial asset.
There are two main types:
- Unit-linked policies: these are tied to the performance of one or more collective investment funds. The premiums paid by the policyholder are invested in specialized funds - such as equity, bond, or balanced funds - based on the client’s risk profile. The policyholder indirectly participates in the financial returns of these investments.
- Index-linked policies: these are linked to the performance of a specific financial index. The benefit amount varies according to how that index performs over time.
Both types offer the potential for capital growth, while still providing insurance coverage.