Unit-Linked Insurance
Unit-linked insurance combines life insurance with investment. Part of the premium provides life protection, while the remainder is invested to potentially grow funds over time, offering both financial security and long-term savings opportunities.
What is Unit-linked Insurance?
Unit-linked insurance is a financial product that combines life insurance protection with investment. This dual approach ensures that the policyholder has adequate life cover while also allowing funds to grow through investment. Unit-linked insurance provides both financial security and opportunities for long-term savings, making it an attractive option for many.
How does Unit Link Insurance Work?
Unit-linked insurance works by splitting the premium paid by the policyholder into two parts. The first part provides life insurance coverage, ensuring that if something happens to the policyholder, their family and loved ones will receive the specified benefits. The second part of the premium is invested in various financial instruments, such as stocks, bonds, or mutual funds, to potentially grow the funds over time.
Advantages of Unit Link Insurance
Life Protection: Like traditional life insurance, unit-linked insurance offers life protection. If the policyholder passes away, the beneficiaries will receive a payout from the insurance policy, helping them manage the financial impact of the loss.