Fondförsäkringar

Fondförsäkringar, often translated as fund insurance or unit-linked insurance, are a type of investment product prevalent in Sweden and other Nordic countries. They combine an insurance component with investment in mutual funds. Essentially, the policyholder pays premiums, a portion of which is used to cover insurance costs, while the remaining amount is invested in a selection of funds chosen by the policyholder.

The investment portion of a fondförsäkring grows or falls in value depending on the performance of the underlying funds. This means the value of the insurance policy is directly linked to market performance, unlike traditional life insurance where returns might be guaranteed or more stable. Fondförsäkringar typically offer a range of fund options, from low-risk bond funds to higher-risk equity funds, allowing policyholders to tailor their investments to their risk tolerance and financial goals.

These products often have a life insurance element, such as a death benefit, which is paid out to beneficiaries if the insured person dies during the term of the policy. The size of this death benefit can vary and is usually related to the premiums paid and the value of the invested funds. Fondförsäkringar can be used for various purposes, including long-term savings, retirement planning, and providing financial security for dependents. Fees associated with fondförsäkringar typically include insurance premiums, fund management fees, and administrative charges.