An Investment Bond or Insurance Bond is a type of a life insurance policy for investment purposes which has a single premium. Life Insurance Companies offer this as an investment instrument. An Investment Bond is a very basic investment and it helps investors for long-term savings. If the bond is held by the investors for more than 10 years and no withdrawal has been made within that time, their earnings will be free of tax.
An Investment Bond is a popular type of investment in countries like the United Kingdom and some offshore locations due to provisions of tax laws.
Conventionally, Insurance Bonds were termed as with-profits policies and were known as with-profit(s) bonds in many cases. Since the unitised insurance funds have been introduced, Insurance Bonds have often been sold as unit-linked bonds or Investment Bonds.
Number of bond insurers has increased over the years. The major Investment Bonds providers are as follows:
Investing in an Investment Bond or Insurance Bond can be profitable because they offer income or growth. They facilitate the investors with the access to a variety of investment funds.
After the implementation of tax free ISA (Individual Savings Account) limit, Investment Bonds offered a lot of tax benefits for attracting investment.
Conventionally, Insurance Bonds invested only on the with-profit fund of the Life Insurance Company. Still, since the latter part of the 1970s, the insurance companies took an attempt to compete with the unit trust market directly. At that time, they offered a comprehensive range of unit-linked investment funds. The Geographic and themed funds are available for most sectors.
In 1979, Sun Life, a Canadian Life Insurance Company introduced the distribution fund. This is considered as an innovative step from the insurance companies. A distribution fund is planned in such a way that investors can receive a regular income which will increase over time. This is accomplished by creating a balance between income generating assets like corporate bonds and/or real estate with equities. The equity element facilitates the growth and the assets generate the income. Distribution Bonds have become highly popular since 2000. They have replaced with-profit bonds because they were considered as the choice of low risk investment in the United Kingdom.
An Investment Bond is a popular type of investment in countries like the United Kingdom and some offshore locations due to provisions of tax laws.
Conventionally, Insurance Bonds were termed as with-profits policies and were known as with-profit(s) bonds in many cases. Since the unitised insurance funds have been introduced, Insurance Bonds have often been sold as unit-linked bonds or Investment Bonds.
Number of bond insurers has increased over the years. The major Investment Bonds providers are as follows:
Investing in an Investment Bond or Insurance Bond can be profitable because they offer income or growth. They facilitate the investors with the access to a variety of investment funds.
Conventionally, Insurance Bonds invested only on the with-profit fund of the Life Insurance Company. Still, since the latter part of the 1970s, the insurance companies took an attempt to compete with the unit trust market directly. At that time, they offered a comprehensive range of unit-linked investment funds. The Geographic and themed funds are available for most sectors.
In 1979, Sun Life, a Canadian Life Insurance Company introduced the distribution fund. This is considered as an innovative step from the insurance companies. A distribution fund is planned in such a way that investors can receive a regular income which will increase over time. This is accomplished by creating a balance between income generating assets like corporate bonds and/or real estate with equities. The equity element facilitates the growth and the assets generate the income. Distribution Bonds have become highly popular since 2000. They have replaced with-profit bonds because they were considered as the choice of low risk investment in the United Kingdom.
