A life assurance, investment or savings policy, under which the policyholder invests premiums into units in a unit trust-type investment. Performance therefore, is dependent directly on current investment market conditions.
Your contributions buy units in the selected fund. The value of the units depends on the underlying assets in the fund. Consequently the value of your fund can go down or up. There is a wide range of funds to choose from: some are relatively low risk and others can be very speculative. back
Investment vehicles in which the monies of numerous investors are pooled together and the entire pool used to purchase assets, i.e. equities, bonds, property, cash etc. depending on the particular fund. Each investor share in this pool is represented by a certain number of units. Unit prices are struck for the fund and reflect the value at that time of the underlying assets. The value of each investor's holding at a given point in time is determined by the number of units they hold multiplied by the prevailing unit prices.
Investments that have been purchased within a collective investment fund, the price of which is denominated by the underlying value of the investments within the fund.
Each contribution buys a number of units at a price, which reflects the value of the assets in the fund, which could be stocks and shares, property etc.
Any policy in which the policyholder invests a premium that buys units in a fund. Performance is therefore linked directly to market conditions. This policy may be a life assurance, investment or savings policy.
A type of investment which is purchased within a collective investment fund. Its value is that of the underlying investments within the fund. A type of a With Profits investment or endowment which is intended to reduce the impact of stock market fluctuations. In certain circumstances, it also enables the insurer to adjust the level of bonuses already allocated.
This phrase refers to the type of life assurance product where the premiums are invested into an asset backed fund. Therefore a unit linked UK equity fund will invest in UK shares either directly through the fund or through the life company's unit trust/OEIC.
The value of the units in this type of fund increases and decreases in response to the performance of the fund's underlying investments. This fund is considered to be more transparent as investment returns are linked directly to performance, making it easier to understand charges.
A term used in connection with regular investment into insurance funds and describing a type of endowment or pension policy. In the context of endowment policies, premiums are used to purchase units in one or more funds. A small proportion of these units is encashed each month (or period) and used to provide life insurance (and possibly other protection); the remainder participate in the investment performance of the fund(s).
A life assurance policy or annuity where the proceeds are linked to "units" in an investment fund.
