What is Unit-Linked Product?

Also known as Investment-Linked Products.
  • A combination of Unit Trust Investment with Insurance Protection.
  • It gives combination of Investment and Protection.
  • Various type of investment available for different risk profile investors
    • Low risk  (e.g. Income Fund)
    • Medium risk (e.g. Balanced Fund)
    • High risk (e.g. Equity Fund)
  • You have flexibility to choose the type of funds (i.e. investment) based on your risk aptitude.
  • You can adjust the level of protection from time to time (normally annually).
  • You can vary the amount of investment (by adjusting the top-up premium).
  • Like a life insurance, you may have mix-and-match different protection, e.g.
    • Medical and health
    • Personal Accident 
    • Waiver of premium

Understanding the risk
  • Like any other investment, investment-linked plans are exposed to investment risk.
  • The unit price of an investment fund, managed by insurance company, is linked to the total value of the plan, which fluctuates with the movements in the unit price.
  • You may realise a gain or loss when you sell your units (i.e. make a withdrawal).
  • Past-performance of an investment-linked fund's track record is only a guide to future performance.