Why Invest in An Insurance Bond?
The decision of which 'wrapper' to place funds within (i.e. onshore bond, offshore bond or collective) can be complex and is based upon the tax position of the investor, the treatment of each wrapper, the likely growth and investment term.
Useful features of Bonds for tax planning scenarios include the tax deferred status, the ability to write the investment in trust and reduce the inheritance tax liability on an estate, and exclusive access to expensive investment links like guaranteed or protected profits funds are to name a few. Bonds can provide income or growth and when income is required there are now bonds that can offer a set minimum guaranteed income for life of the plan holder.
For UK Financial Advisers, the Financial Services Authority is placing increasing focus on what wrapper is being recommended. Advisers must be able to demonstrate they have used a robust process when selecting a bond or collective.
Read more about this topic: Insurance Bond
Famous quotes containing the words invest and/or insurance:
“The true thrift is always to spend on the higher plane; to invest and invest, with keener avarice, that he may spend in spiritual creation, and not in augmenting animal existence. Nor is the man enriched, in repeating the old experiments of animal sensation; nor unless through new powers and ascending pleasures he knows himself by the actual experience of higher good to be already on the way to the highest.”
—Ralph Waldo Emerson (1803–1882)
“For there can be no whiter whiteness than this one:
An insurance man’s shirt on its morning run.”
—Gwendolyn Brooks (b. 1917)