A unit-linked bond is categorized as which type of life assurance policy?

A unit-linked bond is typically categorized as a whole of life policy because it is designed to provide lifelong coverage while also linking the investment component to the performance of underlying assets such as stocks or bonds. The policyholder pays premiums that are allocated to a separate investment account, which can grow over time based on the selected investment choices.

Whole of life policies, including unit-linked bonds, are characterized by their lifetime coverage and the potential for cash value accumulation. This differentiation from term policies, which only cover a specified period without investment accumulation, is key to understanding the categorization. The investment aspect of a unit-linked bond reflects the nature of whole of life products that blend insurance with investment, making it suitable for long-term financial planning.