Malcolm Finney outlines when an investment bond might be advantageous for an individual client.
Life policies can be extremely flexible. They have a number of uses. Perhaps the most common is the policy which offers a monetary payout on death. In addition, a life policy may offer protection against an inheritance tax (IHT) liability which arises on an individual’s estate or where an IHT liability arises on a lifetime potentially exempt transfer on death within a seven-year period.
However, for present purposes, it is their use as an investment which is considered.
Insurance bond
The term ‘insurance bond’ refers to a ‘single premium bond’ which, technically, is a non-qualifying life policy. Its characteristics do not satisfy those necessary to constitute a qualifying life policy (e.g., a minimum term of ten years; insurance premiums
