Life Insurance from Insurance Central

  
Life Insurance from Insurance Central
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Drewberry Life Insurance

   Investment Bonds

Investment Bonds

A bond is an investment normally purchased with a single premium lump sum, but regular payments can sometimes be made.

Your insurance payments are invested by the insurer either in its with-profits fund or as a unit-linked investment where you can choose the fund it is linked to. Then a guaranteed income bond pays you an income at a guaranteed rate for the agreed duration of the bond. It then returns your remaining capital on the maturity date.

With unit-linked single premium bonds your premium is given to one or more funds rather than to the single with-profits fund. The end return you receive depends on the movement in the unit prices over the period of the life insurance policy. Insurers offer a range of funds to which your policy can be linked.

You should ask for an explanation of the numerous funds so that you understand the different risks and opportunities.

 

 

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