Product Profile of the Month
July 2009
Product Provider - Royal Skandia Life Assurance Limited
Product Name - Collective Investment Bond
Single or Regular Premium - Single
Target Audience - Trustees and Individual investors.
Jurisdiction - Isle of Man
Website link - www.royalskandia.com
Product Description:
The Collective Investment Bond is a flexible lump sum whole-life investment. It allows you to take advantage of a wide range of investment opportunities and offers the convenience of holding all your funds in one portfolio. It provides a great opportunity to achieve capital growth with the minimum amount of administration.
Benefits
- Extensive choice of investment funds from many of the world’s leading managers.
- Ability to transfer existing fund holdings into your policy.
- Option to delegate fund management responsibilities by appointing a fund adviser.
- Option to select a custodian by using the selected custodian facility.
- Easy access to capital – total or part surrender at any time with the option to take regular withdrawals to provide an ‘income’.
- Competitive choice of charges.
- Paperwork and record keeping made easy.
- Invest and denominate your policy in one of a range of the world’s major currencies.
- Death benefit of 101% of the surrender value of the policy at no extra cost.
- An early encashment charge may apply if the Bond is encashed in the early years.
Risks
- The value of fund units can go down as well as up and investment growth cannot be guaranteed.
- If you cash in the bond early, or take withdrawals that exceed the growth, you may get less back than you paid in.
- If you invest in a fund that holds investments in another currency, there may be additional risks because of exchange rate fluctuations.
Tax-efficient growth
Whichever investment funds you select, growth can be achieved tax-efficiently. As Royal Skandia is based on the Isle of Man, it is not currently liable to any form of tax in respect of the income and gains on policyholder funds. This means that, with the exception of certain investment income that may be subject to a tax deduction in its country of origin, the Collective Investment Bond will grow tax-free. Policyholders may be liable to taxation on any gains made on the Account.
Policyholder protection and peace of mind
Of all the major offshore centres, only the Isle of Man has a statutory compensation scheme for life assurance companies. This means that Royal Skandia investors benefit from unrivalled protection.
Who is eligible?
The minimum and maximum age limits for investment are 18 and 89 respectively. The Collective Investment Bond is designed for international investors.
Minimum premiums
- Minimum initial premium: £25,000 / $37,500 / €37,500 (or currency equivalent).
- Minimum additional premium: £2,500 / $3,750 / or €3,750 (or currency equivalent).
- Premiums are accepted in most major currencies.
For further information please contact your Independent Financial Adviser.
Alternatively, visit Royal Skandia’s website – www.royalskandia.com.
