Interest rate guarantees in unit-linked life insurance products ensure that at contract maturity, at least a minimum guaranteed amount is paid, even if the mutual fund falls below the guaranteed level. Strongly depending on the riskiness of the underlying mutual fund, these guarantees can be of...

An attractive life insurance product design becomes increasingly important due to demographic change and a declining confidence in state-run pension schemes. Most life insurance contracts are often offered with investment guarantees embedded in the savings part of the product. In addition,...