On a unit-linked whole of life insurance policy, at what price are units typically purchased?

Units in a unit-linked whole of life insurance policy are typically purchased at the offer price. The offer price reflects the amount that an investor pays to buy units in a fund, which is essential for unit-linked policies where the premiums paid are used to acquire units in the chosen investment funds.

When policyholders make contributions to their unit-linked whole of life insurance policy, these contributions are used to purchase units based on the offer price, allowing the investment amount to grow over time. This process ties the value of the policy directly to the performance of the underlying investment funds, giving policyholders the potential for growth based on market performance. Understanding the role of the offer price is important for policyholders as it directly impacts the number of units they acquire and the eventual value of their policy.