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An insurance bond (or investment bond) is a single premium life assurance policy for the purposes of investment. Life Assurance (Life Insurance in US English) is an undefined legal term which relates to policies or contracts which contain an element that is contingent on human life. ...
Invest redirects here. ...
Due to tax laws they are a common form of investment in the UK and some offshore centres. Tax law is the codified system of laws that describes government levies on economic transactions, commonly called taxes. ...
Offshore investment is the keeping of money in a jurisdiction other than ones country of residence. ...
Traditionally insurance bonds were with-profits policies and were often called with-profit(s) bonds. Since the introduction of unitised insurance funds they have often been marketed as unit-linked bonds or investment bonds. A with-profits policy is an insurance contract that participates in the profits of a life insurance company. ...
Unitised insurance funds are a form of collective investment offered through life assurance policies. ...
Why invest in an insurance bond? Bonds can provide income or growth and have access to a wide range of investment funds. The tax advantages offered by bonds attract investment after the tax free ISA limit has been used. An Individual Savings Account (ISA) is a financial product available in the UK, designed for the purpose of investment and savings with a favourable tax status. ...
Range of investment funds Traditionally investment bonds only invested in the with-profit fund of the insurance company. However, since the late 1970s the insurers have tried to compete directly with the unit trust market in offering a wide choice of unit-linked investment funds. Geographic and themed funds for almost every sector are available. Note: the Unit Investment Trust (UIT) is a separate US fund type. ...
One innovation from the insurers is the distribution fund introduced by Sun Life in 1979. A distribution fund is designed to provide a regular rising income for investors. This is achieved by carefully balancing income generating assets such as corporate bonds and/or property with equities. The equity element provides some growth and the other assets the income. Since 2000 distribution bonds have been very popular and have replaced with-profit bonds as the low risk investment of choice in the UK. A Corporate bond is a bond issued by a corporation, as the name suggests. ...
Ownership equity, commonly known simply as equity, also risk or liable capital, is a financial term for the difference between a companys assets and liabilities -- that is, the value that accrues to the owners (sole proprieter, partners, or shareholders). ...
This article is about the year 2000. ...
History
See also Life Assurance (Life Insurance in US English) is an undefined legal term which relates to policies or contracts which contain an element that is contingent on human life. ...
Invest redirects here. ...
A with-profits policy is an insurance contract that participates in the profits of a life insurance company. ...
Unitised insurance funds are a form of collective investment offered through life assurance policies. ...
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