Anali Ekonomskog fakulteta u Subotici (Jan 2018)
Life insurance linked to investment units: Comparison of the Serbian and Hungarian markets
Abstract
Endowment and unit - linked policies are products of life insurance with risk and savings components. These products include protection in the case of early death of the insured or in the case of his survival. With other words, endowment and unit - linked policies are instruments of simultaneous protection and savings. Even if these products are very similar, there are some differences between them. The most important difference is that in the case of endowment policies the investment risk is borne by the insurance company, while the investment risk of unit-linked insurance is borne by the policy holder. Differences between these products generate some differences between the markets which are dominated by endowment or unit-linked policies, too. These differences in the level of development and risk can be shown between the markets of Serbia and Hungary, too.
