Unit-linked life insurance policy
Major technological changes, the increasing complexity of financial markets and a cross-border supply of financial products have been driving the need to better inform customers about packaged retail investment products in the European Union (EU). In the future, it will be easier to compare and understand such products across the EU, making them more transparent. In order to enhance investor protection standards, the European supervisory authorities have made it their goal to increase the information requirements. The Regulation is intended to inform the consumer about possible advantages and disadvantages of an investment product in a pre-contractual disclosure. As a result of these considerations, the PRIIPs Regulation (EU) No. 1286/2014 was created. What are PRIIIPs? PRIIP stands for Packaged Retail and Insurance-based Investment Products. Such products offer retail investors investment opportunities all the while being subject to investment risk. Insurance investment products covered by this Regulation are therefore insurance products of an investment nature, such as unit-linked life insurance or endowment policies. These are products for which the insurance payout is directly or indirectly subject to market fluctuations. This does not include products for which there is national recognition that their purpose is primarily to provide for old age or for which biometric risks alone are insured. What are Key Information Documents (KIDs)? An important part of the PRIIPs Regulation is that a KID must be provided to an investor when purchasing a product covered by PRIIPs. Key Information Documents are non-individualised information sheets for the client that provide initial information on the investment products offered. The Key Information Documents describe risks, return opportunities, information on the maximum loss of invested capital, performance rates and costs of the different investment products.
As a manufacturer of insurance investment products, Liechtenstein Life Assurance AG is obligated to make the Key Information Documents on which the products are based available online. The information contained in the following publications constitutes neither an invitation, an offer nor a recommendation to purchase or sell insurance-based investment products. Below you will find the generally applicable Key Information Documents (KID) of Liechtenstein Life Assurance AG on the insurance-based investment product indicated.
Risk category 1 is characterised by a very low risk. However, there are only low return opportunities. Capital preservation is more important than profitability.
Risk category 4 appeals to profit-driven investors in particular, whose goal is asset accumulation. As such, the investor accepts exchange rate or currency fluctuations.