Multiple choice

In traditional life insurance policies, the investment risk is borne by the _____, while in unit linked plans, the investment risk is borne by the _____.

  1. policyholder, unitholder

  2. insurance company, unitholder

  3. insurance company, insurance company

  4. policyholder, insurer

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In traditional life insurance policies, the investment risk is borne by the insurance company, while in unit linked plans, the investment risk is borne by the unitholder.