The correct answer is: B. Net Asset Value
A unit-linked policy is a type of life insurance policy that allows you to invest your premiums in a variety of underlying assets, such as stocks, bonds, and mutual funds. The value of your policy is determined by the performance of these underlying assets.
The net asset value (NAV) of a unit-linked policy is the total value of the underlying assets divided by the number of units outstanding. The NAV is calculated daily and is used to determine the value of your policy.
The gross asset value (GAV) of a unit-linked policy is the total value of the underlying assets, including any liabilities. The GAV is not used to determine the value of your policy.
A bonus is a payment that is made to policyholders by the insurance company. Bonuses are not guaranteed and are typically based on the performance of the underlying assets.
A guaranteed addition is a payment that is made to policyholders by the insurance company, regardless of the performance of the underlying assets. Guaranteed additions are typically a small percentage of the premium.