Mutual funds and Unitlink, what is the difference? Let's take a look

Mutual funds and Unitlink, what is the difference? Let's take a look

Many ask what is insurance combined with investment? Well insurance combined with investment is a product that arises from the assumption of many that purchased insurance is an expense. So that many people buy insurance products. With product insurance that is integrated with an investment that can make us feel comfortable that buying an insurance product makes us lose our money if the insurance is not used. Insurance is indeed an umbrella before it rains, right?

In some people insurance also suggests that you also have health and life insurance of course. So that one day and one day, of course, no one expects that when we are sick, we will not erode all the investment returns that we have for the cost of treating the disease.

Insurance with an investment bundling called Unitlink. The real principle of Unitlink is that it is no different from mutual funds. Therefore, if we get an offer from insurance with an investment package, cool terms will appear such as "Unitlink Equity", "Unitlink Money Market" and various other cool terms. If we remember, it seems that it has similar names with mutual fund products, right?

The difference between Unitlink and Mutual Funds lies in the method of purchase, buying Unitlink without having an insurance policy cannot be done. Well, of course, different from mutual funds.

Another difference is in terms of costs. In mutual funds there are two basic things in terms of costs, namely the cost of buying and selling costs. In unit-linked costs, there are costs called acquisition costs. Acquisition costs are costs that arise from a combined insurance and investment program. Therefore, our partnership wants to buy insurance that has a combination with unit-linked costs that appear compared to other products. There are several things that need to be considered, namely; fees are charged until what year, how much is the cost of selling Unitlink that I have, the amount of insurance costs that are charged every month or year, what are the coverage we get from paying the insurance costs and don't forget to look at the growth of the relevant Unitlink NAV prices.

Does this mean making us lose? The answer is no. In insurance products that are integrated with investment, we get the convenience and health protection facilities that usually provide complete and beneficial protection in terms of protection for its customers. However, there is a fee charged from the bundled product. However, it is also in line with the service of this insurance product which soothes policyholders.