The correct answer is: C. Either A or B.
Units in a Unit Linked policy are purchased through payment of a single premium or regular premiums. A single premium is a lump sum payment made at the beginning of the policy term. Regular premiums are payments made on a regular basis, such as monthly or annually.
Unit Linked policies are 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 will fluctuate based on the performance of the underlying assets.
Unit Linked policies offer a number of advantages over traditional life insurance policies. They offer more flexibility in terms of how you invest your premiums. They also offer the potential for higher returns than traditional life insurance policies. However, they also carry more risk.
If you are considering a Unit Linked policy, it is important to understand the risks and potential rewards involved. You should also consult with a financial advisor to determine if a Unit Linked policy is right for you.
Here is a brief explanation of each option:
- Option A: Single premium. A single premium is a lump sum payment made at the beginning of the policy term.
- Option B: Regular premium. Regular premiums are payments made on a regular basis, such as monthly or annually.
- Option C: Either A or B. Units in a Unit Linked policy can be purchased through payment of a single premium or regular premiums.
- Option D: None of the above. This option is incorrect because units in a Unit Linked policy can be purchased through payment of a single premium or regular premiums.