In a short time, the “English method of investing” has become one of the most popular financial instruments abroad for long-term (from ten years) savings. For example, the share of unit-linked insurance plan in fees in the life insurance market averaged 33% in the European Union in the fourth quarter of 2020. This product accounts for 90% of life insurance sales revenue in Poland.
Among the main advantages of unit-linked are preferential taxation (in many countries, insurance products are exempt from taxes), a flexible schedule for replenishment and withdrawal of funds, independent choice of investment projects (the insurer acts as an operator, not a manager) and legal protection. All client information is confidential and can only be disclosed by a court order in the jurisdiction, which the insurer is registered in. There is also an option to transfer assets by inheritance. Compared to investment life insurance, unit-linked is distinguished by greater transparency, high profitability (while part of the investment risk lies with the client) and a wide range of investments (stocks, bonds, foreign exchange market, mutual funds, ETF).
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