What is a unit fund?
The distributed (invested) portions of the premiums after deduction are pooled together to form a unit fund for all the fees and premiums for risk cover under all policies in a specific fund as selected by the policyholders.
- What is a unit fund?
The distributed (invested) portions of the premiums after deduction are pooled together to form a unit fund for all the fees and premiums for risk cover under all policies in a specific fund as selected by the policyholders.
- How much of the premium is used to purchase units?
Purchasing units are not allocated the full amount of the premium charged. Insurers assign units after paying for separate costs, fees and deductions on the portion of the premium remaining. The amount of premium used for the purchasing units varies from product to product, however. Invariably, the overall monetary value of the allocated units is smaller than the amount of the premium charged since the fees are first removed from the received premium and the remaining amount is used for the allocation of units.
- Would sale, purchase, acquisition or assignment of a secured debt constitute a transaction in money?
The selling, purchase, acquisition or assignment of a secured debt does not constitute a cash transaction; it is a derivative and, thus, a security transaction in nature.
What's Your Reaction?
