The benefits of savings plus insurance, besides could grow your money, the risk of your life is also protected. The risk here means the life of a person. So, if the person dies, the heirs will receive compensation from the bank where he savings. However, at this time, savings products plus insurance have not been considered sufficient, because most of the interest from savings is not too high. Someone who has money generally wants their money to grow faster, but has minimum risk.
Thus, there is a new product called unit-linked. Unit-linked is an insurance product plus investment or could also be considered an investment plus insurance. The substance that contained in the unit link is already exists in the dual-purpose insurance product can be called as endowment. Although has the same substance, unit-linked and endowment are somewhat different. In unit link, basically someone who owns money placed his money for two different things, which are insurance and investments. In other word, the unit link is not a single entity product / unbundling.
More than that, someone who owns money can determine the amount of money that he is going to invested for the investment and also for his life. Also in the unit-link product, the insurance companies are no longer bears the investment risk but you as the insured must bear the losses if occurred.
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thanks !! very helpful post!
Since we’re on the topic of Business Plans – The Benefits of Savings Plus Insurance | Business Plans, A sales illustration is not a legal document. Legal obligations of a life insurance policy are spelled out in the policy itself. Therefore, a policyholder must read the fine print of the contract carefully to ensure that he/she understands the exact nature of the policy, the risks that are covered as well as the limits or exclusion clauses, before signing the contract.