Some investment policies, such as endowment policies, are used to invest in unit trusts. These are called unit-linked life assurance policies.
a unit-linked policy is a type of endowment policy in which profits depend upon the performance of units in an invested fund.
Also called Unitised. If your insurance policy is unit-linked, some of your money is used to purchase 'units' in a fund. The value of your policy at maturity is dependent upon the growth of the fund in which the policy is invested. Generally refers to policies that offer protection and saving such as endowment insurance, whole life insurance and investment bonds.
Where the value of the saver's fund is linked to the value of the units of the fund it is invested in.