Unit Linked Insurance Plan

Our bnl Unit Linked Insurance Plans are designed, in conjunction with Fidelity Worldwide Investments, to help you achieve your financial goals over the long-term and the longer the term you choose the better for stabilizing the effects of market volatility. If you make regular contributions over a long period, the costs of administering the product will be spread over time which means a higher allocation and a higher investment portion of the premium, further boosting the Policy's accumulated value.

A suggested minimum period for this type of investment is 8 to 10 years in order to mitigate the impact of market volatility and to allow your investment to benefit from the compounding of the invested amounts.

bnl offers flexibility and transparency, combining some protection insurance mixed with an investment component blended according to your specific individual needs. You can choose funds according to your preference and structure a specific investment split across a variety of funds.

There are 3 types of products:

 
DIVERSIFICATION OF AN INVESTMENT PORTFOLIO AND THE INDIVIDUALS' ATTITUDE TO RISK

Different stages in your life demand different investment structures, based on your personal circumstances. So when making your investment decisions ask yourself:

  • How long am I planning to invest for?
  • How do I decide the mix of equities, bonds and cash?
  • What are the transaction costs involved?
  • How often should I review my portfolio?
 

There are 4 main types of assets you can invest in – equities, bonds, cash and alternatives. Most Investors choose a combination of these investment types to make up their portfolio. These asset classes perform very differently over different time horizons. While research shows that equities tend to perform better than cash, bonds and property over the long-term, each can be appropriate at a different stage. These different investments carry different risks but also different levels of potential returns.

WHY DIVERSIFY AND HOW?

Different markets perform differently at different times so one of the most effective ways to achieve consistent returns is to spread your money between several different types of assets or markets. This is known as diversification and is essential to reduce the overall risk of the portfolio but is not sufficient in itself to protect the Investor from economic downturns, for instance where all asset classes can have potential to fall.

Diversification gives you greater potential for growth because your portfolio is not dependent on any 1 company, fund or sector doing well. So if one of your investments is performing less well, others should be performing better to compensate. This means you reduce your potential downside risk.

UNDERSTANDING YOUR ATTITUDE TO RISK

Investment in shares, bonds or cash carry different levels of risk that need to be considered against potential returns. A higher level of risk normally means that the potential for growth is greater, but there is also a greater possibility that your investment might go down.

What is important is deciding the level of risk that you are comfortable with. The diagram below illustrates the risk/return spectrum. The investments towards the left carry less risk, but the potential returns are lower. Those at the other end carry more risk, but have more chance of producing greater returns.

THE RISK RETURN SPECTRUM
 

If you want to achieve significant levels of growth, you need to tolerate some investment risk. You may find that you can manage this risk through diversification – spreading your money across funds that invest in a variety of markets and types of investment. All these qualities are available in our Product so that you can structure your investment according to your personal taste.

 
DOCUMENTARY EVIDENCE REQUIRED TO PROCEED WITH APPLICATION