Unit Link is a combination of investment and insurance.
It's often scammy.
The reason it's scammy is because by combining it with insurance, the company can charge much more and the customer may not notice.
Imagine if expected coverage is $50 or if insurance with similar coverage is sold for $50. Imagine if I tried to sell that for $5k. Any customers will know it's heavily overpriced and don't buy. Because customers know that no money is invested, the customer knows that all $5k will be gone for something that's just worth $50 and won't buy.
However, if the premium is $10k, where $5k of the money goes to fees, customers may not know how much money of the $5k is truly invested. The company can simply obfuscate the fee, the agent can simply mislead customers that there is no fee.
Another way the customer can know if they're being had is by analyzing the future value of the investments.
The insurance agents will tell customers that the stuff is profitable in long term but not in short term. Unless the customer uses excel and stuff they wouldn't easily know that their investments value is much lower whether it's in the long term or short term.
I've heard that due to this Unit Link is illegal in Australia. Is it true? Where is the law?