Insurance Bonds:

A life insurance bond is backed by investments within a life office statutory fund. This does not mean they are invested in life insurance but rather in investments. They have a nominal term of ten years but can be redeemed earlier or later than the ten year term. These investments do not supply a regular income as all the income is retained in the bond and used for further investment. Tax is paid through the fund and therefore for some investors there may be taxation advantages to this style of investment.

Insurance Bonds can either be:

· Investment Linked - These are regularly valued and a unit price is set according to the value of the base investments; and
· Capital Guaranteed Bonds - Earnings are credited to your account annually much the same as bank interest.

To find out more about this style of investment contact us today.












Charter Financial Planning is a principle member of the Financial Planning Association.
Charter Financial Planning, Level 3 447 Collins Street, GPO Box 2830AA, Melbourne 3000.