Life insurance is a promise from an insurance company to a customer related to his or her death that ensures a certain amount of compensation to their heir or heirs upon the customer’s demise.
The choice of what insurance product to purchase depends on the individual’s needs. Sometimes a customer chooses a product without a saving element or other types of insurance products, such as those that provide compensation for accidents, hospital care and so forth.
However, for quite some time insurance has been more than just protection but a combination of investment so it has become an attractive option. This type of insurance is quite different from conventional insurance. The insurance premium of this type of investment, which is often called unit-linked insurance, is used to purchase related fund units. So higher insurance premiums clearly mean more fund units.