Unit-linked versus euro funds
Reading time: 3 min
| Euro Fund | Units of account | |
|---|---|---|
| Cover | Total premiums paid (denominated in foreign currency) minus the costs of the policy | Number of units of account |
| Financial risk | Supported by the insurance company | Supported by the subscriber |
| Underlying | Mostly government and corporate bonds | All types of financial assets authorised by the insurance company |
| Return/performance | Extremely limited, linked to the composition of the euro fund, the fall in government bond yields and the insurance company's policy on profit distribution | Potentially unlimited, depending on the performance of the policy’s underlying assets |
| Investment strategy | Limited to the insurance company's strategy for the management of the euro fund | Customisation of the strategy depending on the client's investment objectives |
| Investment limits | Limited to the part of the premium invested in euro funds by the insurance company | No investment limits (except for the choice of specific assets) |
| Exit penalties |
Potential exit penalties in the event of early surrender (according to the company's euro fund) |
In practice, there is no exit penalty for the policy’s underlying investments |
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The contents of this theme
Reading time: 3 min
Unit-linked versus euro funds
7 points of comparison between euro funds and units of account.
Reading time: 3 min
The advantages of unit-linked policies
The advantages of the life insurance contract include a high degree of flexibility and security.
Reading time: 3 min
Statistics on Unit-Linked Policies
Luxembourg, leader in the management of unit-linked life insurance contracts.
Reading time: 3 min
The various available investment vehicles
The diversity of the investment vehicles of the Luxembourg life insurance contract explained in video infographics.
Reading time: 2 min
Calculation of the NAV of an internal dedicated fund
How is the net asset value of a dedicated fund calculated?
Euro funds or units of account? Which solution for your life insurance contract?
The euro fund and units of account are both eligible investments within a Luxembourg life insurance policy. The euro fund offers a guarantee of the premiums paid (less the contract fees), unlike units of account whose performance is linked to the underlying assets of the contract. The unit-linked life insurance contract offers greater flexibility in terms of the type of eligible financial assets and customisation of the strategy according to the risk profile of the policyholder.