fondförsäkring

Fondförsäkring, translated as fund insurance or unit-linked insurance, is a type of life insurance policy where the value of the policy is linked to the performance of underlying investment funds. Instead of a guaranteed return or a fixed sum assured, the policyholder invests in a selection of mutual funds or other investment vehicles managed by the insurance company. The premiums paid by the policyholder are invested in these chosen funds, and the death benefit, as well as any surrender value, fluctuates based on the market performance of these investments.

This structure allows for potential higher returns compared to traditional life insurance products, as it gives the policyholder exposure to capital markets. However, it also carries investment risk, meaning the value of the policy can decrease if the chosen funds perform poorly. Policyholders typically have a degree of choice in selecting the funds they wish to invest in, often with options ranging from low-risk bond funds to higher-risk equity funds. Fees and charges, including investment management fees and insurance costs, are deducted from the policy value. Fondförsäkring is a popular product in many European countries, particularly in the Nordic region, offering a combination of life cover and investment potential.