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What you need to know about investment life insurance

Unit-linked products (eng. “connected parts”), including investment tools and insurance coverage in case of death, accident, illness, were invented by the British. The products were first introduced to the market in 1971 by the Unit Trust of India.
What you need to know about investment life insurance

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).

Source: https://www.thehindubusinessline.com/portfolio/personal-finance/three-things-to-know-before-taking-the-ulip-cover/article65410357.ece

Photos are from open sources.

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