A lump sum bond is a single premium, usually whole of life, life assurance policy. They are structured primarily as investments offering nominal life cover. The main types are: Guaranteed Income Bonds, High Income Bonds, Guaranteed Growth Bonds, Unit-linked Bonds, Distribution Bonds and With-profit bonds. You can invest for income and/or capital growth.

Depending on your current and future circumstances there maybe tax advantages from investing in lump sum bonds and you can withdraw up to 5% per annum of the original investment without an immediate tax charge.

As an Independent Financial Adviser (IFA), we will use our independence and expertise to recommend the most appropriate Investment(s) for you based on your circumstances, needs, attitude to risk and objectives.

 

The longer term investment with the potential for growth

A portfolio or onshore investment bond gives you access to a wide range of funds in which you can invest your money for the long term. It aims to increase the value of your money or provide you with an income.

 

What is an onshore investment bond?

This is an investment that offers some life insurance cover and certain tax benefits. It allows you to invest a single lump sum (the minimum amount is £5,000) with the aim of providing potential capital growth, an income or a combination of both. It has no fixed term, but is designed to be a long-term investment.
Your money is invested in a fund or funds, which are actively managed by expert fund managers. Investment bonds offer you a wide choice of funds managed by leading fund providers. Each fund carries a different level of risk and potential return, depending on what types of assets it invests in. As your circumstances and financial needs change, you can move your money from fund to fund, perhaps changing from a growth fund to one that aims to provide you with an income, although there may be a charge for this.