Fund Value
Accumulations
Net Asset Value
Premiums
Answer is Right!
Answer is Wrong!
The correct answer is: A. Fund Value
Unit-linked insurance plans are a type of life insurance policy that allows you to invest your premiums in a variety of underlying funds. The risk cover in a unit-linked policy is a multiple of the fund value, which is the total value of the underlying funds at the time of death.
The other options are incorrect because:
- Accumulations are the total amount of money that has been paid into the policy, including premiums and investment returns.
- Net asset value is the value of a fund per share, which is calculated by dividing the total value of the fund’s assets by the number of shares outstanding.
- Premiums are the payments that you make into the policy.
I hope this helps! Let me know if you have any other questions.