AT A GLANCE
What is an investment bond?
An investment bond usually holds a lump-sum investment within a life insurance policy. Its charges, investment choices, access terms and tax treatment need careful consideration. It is different from a bank savings bond or lending money directly to a company.
An investment bond is a life insurance based investment arrangement, usually funded with a lump sum and invested in funds. Its tax and withdrawal rules differ from those of an ISA or a pension. Understanding those differences is essential before deciding whether this structure fits your longer term plans.
What this can help you explore
- Understand how the policy and underlying investments work.
- Consider withdrawal needs alongside other sources of income.
- Compare the structure with other investment options.
Things to consider
The investment value can fall, and product charges or early withdrawal costs may apply.
Tax deferred withdrawals are not the same as tax free income; later tax charges may arise.
Your questions, answered.
No. Here, investment bond means an insurance based investment product. Government and corporate bonds are loans to their issuers.
Access depends on the policy. Withdrawals can affect investment value and tax, so both the method and timing need careful consideration.
Who provides this service?
The provider, applicable permissions, advice scope and terms must be confirmed before you proceed. Regulatory treatment and protections vary by service and product.
Regulatory information