Investment Linked Insurance

With term assurance policies, lower premiums make them an affordable way of guaranteeing the security of your family in the event of your death, within the policy term, but there is no guarantee of a payout. Some life insurance policies however, can be effectively used as an investment.

Whole life or endowment policies will provide the beneficiaries with a payout after a fixed period or a death. These payments can be a fixed amount, or in some cases linked to an insurance company's investment performance in the form of with profits policies or unit linked policies.

With profits policies may generate rewards from the valuation of the assets and liabilities of the insurer's life fund, but premiums will be much higher. Unit linked policies link the value of the policy to units in a unitised fund. The units are linked to the underlying value of the fund. The value of the policy can therefore fluctuate depending on the value of the units. The pricing structure and type of fund depends on your insurance company. Many insurance companies now have unitised with-profits funds.

• Flexibility to choose your own level of protection and investment.
• Ability to vary the amount of your premium payments or coverage based on your own personal financial situation.
• Flexibility to choose the type of funds based on your risk aptitude.

Past performance is no guide to future returns. The value of investments can fall as well as rise