  One of the risks derived from selling long term policies that any insurance
company has, arises from interest rates. In this paper we consider a general
class of stochastic volatility models written in forward variance form. We also
deal with stochastic interest rates to obtain the risk-free price for
unit-linked life insurance contracts, as well as providing a perfect hedging
strategy by completing the market. We conclude with a simulation experiment,
where we price unit-linked policies using Norwegian mortality rates. In
addition we compare prices for the classical Black-Scholes model against the
Heston stochastic volatility model with a Vasicek interest rate model.
