Unitised with-profits life assurance combines the best of both worlds, allowing for greater security with a better return.
So what are we talking about here? What are we combining? Simple - with-profits life assurance and unit-linked life assurance.
Premiums are used to buy units of a chosen fund, as in unit-linked life assurance.
The value of these units is increased with the addition of annual bonuses (revisionary bonuses), similar to with-profits life assurance.
The bonuses, of course, cannot be taken away in succeeding years, so the value of units can never fall. Thus the value of the policy, on either death or maturity, is guaranteed.
The assurance policy can also be 'cashed in' or surrendered before the term has been completed, the settlement being dependent on the value of the units allocated and prevailing market conditions.
