Jurisdiction(s):
European Union

Key definition

Long-term definition

What does Long-term mean? Long-term describes obligations, assets or investments extending beyond the short‑term horizon; the precise threshold depends on context and governing standards used in legal practice and finance. In the Eurobond market, it commonly refers to securities with an initial maturity of more than seven years. Under accounting standards (IFRS and UK/Irish GAAP), amounts due or receivable after more than twelve months are presented as non‑current; accordingly, long‑term debt denotes borrowings with a remaining maturity of over one year. This classification affects balance sheet presentation, disclosure and covenant calculations. In loan, security and capital markets documentation across England & Wales, Scotland, Northern...

Unit-linked and linked long-term insurance under EU law: Solvency II, UCITS-permitted links, third-country equivalence, PRIIPs/IDD distribution, policyholder protections, and EIOPA value-for-money benchmarks

Published by a LexisNexis EU Law expert

Practice notes

The pay-outs under long-term or life assurance arrangements can, in some cases, be tied to the worth of particular assets. Those assets are commonly, though not always, investment funds or unit trusts. A policy might be stated to track the value or performance of a set number of units in the relevant fund, or alternatively it might be linked to a share index. Such arrangements are generally called ‘unit‑linked’ or ‘linked long term contracts’ (‘unités de compte’ in French and ‘fondsgebundene’ in German). Strictly, ‘unit‑linked’ sits within the broader category of ‘linked long term’, as a contract can, albeit infrequently, link straight to a non‑unitised asset. They present a range of legal and regulatory questions, succinctly outlined in this Practice Note.

EU regulatory status

Linked long-term contracts are categorised as Class III under Annex II to Directive 2009/138/EC (the solvency ii Directive).

Types of unit-linked insurance policies

Unit-linked insurance offerings may include the following:

mortgage endowments
whole of life policies
pensions
annuities, and
investment bonds or single premium policies

In the case of a unit‑linked mortgage endowment, for example, the linked...

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Web page updated on 22/05/2026

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