Unit-linked or there
also called investment-linked
is an individual policy that provides life insurance protection at all times
value is changed according to the proficiency level in these investment asset value. In other words, the unit-link is a combination of
insurance and investment. Thus, unit-linked
are also classified as non-traditional insurance.
Unit-Link is a development of
types of life insurance or endowment. Cash value on these policies
invested in several capital market investment products, SBI or deposit.
It is no wonder if the growth in value of unit-linked policy is strongly influenced
by the performance of its investment portfolio. if the investment performance experienced
increases, the growth of policy values also increased, even beyond
cash value that existed at the traditional life insurance. Conversely, if performance
investment declined, the value of unit-linked policies
could be under the traditional cash value life insurance.
Cash value or the value of unit-linked policies
can be calculated with the formula as follows;
Policy Value = Number of Units x Price per Unit