augfan77
Member
Cash: $ 4.90
Posts: 21
Joined: 07 Mar 2006
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Unit linked share |
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Small investments to unit linked stocks(insurance) would be the right decision? I heard that the investments are larger out of the premium as compared to the endowment policies.
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Mon Mar 13, 2006 4:59 am |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA |
Is that a European thing? I never heard of unit linked shares here in the states. But as near as I can gather from a quick Google search, it sounds similar to a variable annuity, or insurance with variable rate of return of cash value (possibly with minimum guaranty).
It sounds like the client "might" get a better return than a fixed rate if things go well, or the insurance company may risk having to pay a minimum if things go bad.
Since the actual cost of insurance is the same for your age and risk factors, the only way that the investment would be larger out of the premium is if the premium itself is larger. That is usually not the best way to invest, unless you have exhausted all other methods to tax defer or tax shelter retirement savings.
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Mon Mar 13, 2006 6:14 am |
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