Investment bonds
An investment bond is a single premium life insurance policy.
Your money is invested and buys units in a selected range of
investment bond funds. These funds are invested and so the value
will rise and fall, this is reflected in the unit price rising
and falling rather like share prices. Investment bonds have a
wide number of fund types to choose from and you can hold a bond
in joint names.
Investment bonds can be useful for inheritance tax planning as
they can be held in trust. The minimum investment is typically
£5,000-£10,000 depending on the investment bond provider.
The main advantages of investment bonds are:
- Regular withdrawals can be taken to provide an ‘income’
- A choice of investment funds linked to equities, gilts, property, cash deposits and with profit funds.
- Full time professional investment management
- The ability to switch your investment from one fund to
another
Investment bonds are issued by insurance companies and can be UK based or offshore bonds. Investment bonds of this type should not be confused with bonds issued by banks or building societies which are deposit based accounts.
If you would like investment advice then please contact us for further details of our service.