Unit-linked versus euro funds

  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
 João Espanha, lawyer
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.
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The various available investment vehicles

The diversity of the investment vehicles of the Luxembourg life insurance contract explained in video infographics.
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.