Product Profile of the Month
May 2010
Product Provider - Skandia Life Ireland Limited
Product Name - European Executive Investment Bond
Single or Regular Premium - Single
Target Audience - Individual investors, Corporate investors and Trustees
Jurisdiction - Dublin
Website link - www.skandia.ie
Product Description:
The European Executive Investment Bond is a flexible lump sum whole-life investment. It is an open architecture offering with a high level of investment freedom and a wide range of charging options. It offers the convenience of holding all assets in one portfolio. It also provides a great opportunity to achieve capital growth whilst minimising the amount of administration.
Benefits
- Extensive choice of investment assets.
- Ability to transfer in existing fund holdings into the policy or on top of new cash investments.
- Track all investments through one statement. Paperwork and record keeping made easy.
- On-line service enables your client to check their investment portfolio and download policy valuation statements whenever they need.
- Pass back any negotiated initial institutional discounts to your client based on our global purchasing power.
- Competitive choice of charges.
- Invest and denominate the policy in one of a range of the world’s major currencies.
- 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’. An early encashment charge may apply if the bond is encashed in the early years.
- Death benefit of 101% of the surrender value of the policy at no extra cost.
* Regular withdrawals are not available to clients resident in Belgium.
Risks
- If your client cashes in the bond early, or takes withdrawals that exceed the growth, they may get less back than they paid in.
- The value of fund units can go down as well as up and investment growth cannot be guaranteed.
- If your client invests 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 Skandia Ireland is based in Dublin, it is not currently liable to Irish income tax, capital gains tax or corporation tax on policyholders’ funds. In the unlikely event that a unit-linked policyholder fund invests in a country which doesn’t have a double tax agreement with Ireland, there may be an amount of withholding tax on the income which cannot be reclaimed.
Stability and security
Skandia Ireland’s presence in the European city of Dublin means you can be confident that your interests are protected. Ireland is a full member of the European Union and has strict anti-money laundering legislation which complies with EU standards. Ireland has a well established and rigorous life insurance company regulatory system, which has enabled life insurance companies to be well positioned to operate even in turbulent economic times.
Who is eligible?
The minimum and maximum age limits for investment are 18 and 85 respectively. The European Executive Investment Bond is available to investors who are resident in the EU/EEA and subject to Skandia Ireland’s territoriality matrix available from admin@skandia.ie.
Minimum premiums
- Minimum initial premium: €75 000, £50 000, US$75 000 (or currency equivalent).
- Minimum additional premium: €7 500, £5 000, US$7 500 (or currency equivalent).
- Premiums are accepted in most major currencies.
For further information please contact your Independent Financial Adviser.
Alternatively, visit Skandia Ireland’s website – www.skandia.ie.
