Chapter 2 mentions that a high income bond may consist of: A temporary annuity to provide the income A zero coupon bond to provide a minimum capital guarantee Call options to provide exposure to equity price movements Would the aim be to buy a zero coupon bond which matches only a small proportion of the return of capital guarantee (say 10% of the single premium)? How do call options provide exposure to equity price movements? In the UL version of the product, what I initially thought was that these options would allow the insurer to buy the underlying assets / equities at a given price at some point in the future (as premiums are received). But this is a single premium product so I'm a little confused. Also, how does it work in the index-linked version?