What is insurance saving and what is unit-linked insurance?
Insurance saving is a form of long-term savings and investment. Despite the name, insurance saving does not mean insuring your assets; instead, it is an investment made through an insurance company. There are many benefits to insurance saving that are not available with traditional bank accounts and investment funds.
A unit-linked insurance policy is an insurance saving agreement that allows you, within that agreement, to invest in a variety of investment objects and to reallocate your investments without the gains from those changes being taxed. There are various types of unit-linked insurance, examples being endowment insurance and capital redemption contracts. These may also be described with the terms ‘savings insurance’ or ‘insurance wrapper’.