 Sam
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 Posted: Tue Jun 15, 2004 5:18 pm Post subject: Unit Linked Endowment Policy |
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Unit Linked Endowment policy is a type of endowment policy, which is designed for use with mortgage repayment and is mostly used by life offices. With this type of endowment policy:
- The policy holder can decide to invest his/her premiums into one or more different funds managed by the assurance company.
- The value of the units is related to how well the fund is doing, and can go
up or down very quickly.
Features of unit linked endowment policy are as following:
- Unit-linked funds have the potential for greater and faster growth.Unit-linked funds have the potential for greater and faster growth.
- There is a greater risk that the unit linked policy,may not produce such good returns as with a with-profit endowment policy.
- A policy holder may make more money, than is needed to pay off the capital debt.
- There is a built in life cover.
- It helps in early payment of mortgage debt.
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