Unit-linked Endowment
Unit-linked endowments are investments where the premium is invested in units of a unitised insurance fund. Units are encashed to cover the cost of the life assurance. Policyholders can often choose which funds their premiums are invested in and in what proportion. Unit prices are published on a regular basis and the encashment value of the policy is the current value of the units. This is the simplest definition.
Another definition: -It is a Life Insurance Policy whose value is expressed in terms of numbers of units t holds and the prices of those units ; for example, a fund with 1000 units @ £10 each unit gives a fund value of £10,000. -The Policy Holder chooses where to invest and he bears most of the risk. -A number of charges is deducted from the fund on a regular basis. -Accumulated policy value depend on the fund performance.
Read more about this topic: Endowment Policy
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