Reading time: 3 min

Unit-linked versus euro funds

By - Head of Tax, Wealth Planning and Product Management - Bâloise Vie International
  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