Investment Bonds

What is an Investment Bond?

In simple terms investments bonds are a single premium life insurance policy. Insurance companies use your premium to invest in a range of funds that are managed by professional investment manager with the aim of producing long-term capital growth.

Bonds provide a tax-efficient method of having a range of investment funds managed in one place. While withdrawals can be taken, in most cases the policyholder does not receive an income from bonds so personal income tax is deferred.

Bonds offer a good investment opportunity for long-term savers, though there are often minimum investment levels and this may not suit investors looking for quick returns or small or gradual investment levels. There are a range of choices in the types of bonds available, and we help clients understand the benefits and risks associated with the wide range available.

The Benefits of Investment Bonds

• Provide a degree of life cover and capital growth potential, while allowing clients to make one-off or regular withdrawals.
• Investment flexibility to choose whether to invest in a range of funds, a portfolio, or a mixture of both. Funds can also usually be switched within your bond.
• UK investment bonds are non-income producing assets and offer tax efficient savings and estate planning opportunities.

For more information or advice about investment bonds, please contact us.