Unit

Premiums into a unit-linked policy, after charges and the cost of cover, buy units in the funds you have chosen. The units are how your investment is measured.

The number of units is fixed at purchase; what changes is what each is worth.

Related terms

• NAV Net asset value — the per-unit price of a fund, published regularly.
• Fund value The current worth of the units held under a unit-linked policy.
• ULIP A unit-linked insurance plan. Part of the premium buys cover, the rest is invested in funds you choose.

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