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Investment Bonds

Taylor James financial advisers provide personalised and experienced investment and insurance services. These areas of expertise come together in our investment bond advice service, whereby individuals can access life cover by investing a lump sum amount. Learn more about these unique life insurance policies below, or contact our team directly for a personalised consultation.

What is an investment bond?

An investment bond is a single-premium life insurance policy that is used to hold investments with potential tax benefits. The funds deposited are covered by the Financial Services Compensation Scheme (FSCS).

You might be suitable for an investment bond if you have at least £5,000 to invest in the policy and don’t need access to this money for the lifetime of the policy. You must also be comfortable with the risk to your investment.

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How does an investment bond work?

To use an investment bond, you must deposit your funds into the bond. This money is then invested in multiple mutual funds based on your preferences and risk tolerance. It is hoped that the value of your investment will increase the longer it is held. 

The value of the bond will then be paid out to you or your estate beneficiaries in one of three situations:

  • You pass away
  • Your bond matures, although you could then re-invest it if desired


 

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How does an investment bond work?

  • You withdraw the money, although this will usually require you to pay a surrender fee

Tax may or may not be payable when the money is withdrawn from the bond. However, it might not be subject to tax if it’s paid out to estate beneficiaries, and it could still be a tax-efficient method of investing otherwise.

Sometimes you can pay a set-up fee which then guarantees the eventual payout will never be less than the initial deposit.  

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Investment bond key considerations

Several considerations should be made before choosing to use an investment bond:

  • You must clearly understand how these products work
  • You must acknowledge the level of risk in different bonds
  • You must decide the length of term you wish to invest
  • You must know the fees involved, including set-up fees, switching fees and surrender charges
  • You must consider your long-term investment goals and alternative investment options which you may be better suited for
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The benefits of receiving investment bond advice

Investment bond advice will assess your exact situation to calculate if an investment bond is the most suitable investment and life insurance for you. There might be more suitable options available, and it’s important to determine the best course of action from the outset to avoid mistakes.

Your adviser will also help you to:

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The benefits of receiving investment bond advice

  • Find the most suitable investment bonds based on risk tolerance
  • Understand tax-efficient investment growth
  • Apply for your preferred investment bond
  • Manage and monitor your investment for your peace of mind
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Taylor James investment advice services

Don’t delay finding the most suitable investment bond for you and speak to a Taylor James financial adviser today. We’re ready and waiting to help! 

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Call us today for a no obligation chat about planning your financial future.

Call: 0203 859 3320

Email: contact@taylorjamesfs.co.uk

Please note:

  • The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.
The team at Taylor James worked hard behind the scenes to make my self employed non standard mortgage application run smoothly form star to finish during lockdown. All the stress of the process was removed form me as the applicant. Toby also found an even better deal for me with my chosen lender just before the application was submitted. I would highly recommend Taylor James for their professional, efficient and courteous service.
Deborah B.

FAQs

How much will you need to retire in the UK?

Although the UK state pension should theoretically provide enough money for a comfortable retirement, this isn’t always the case. The exact amount you need to retire will depend on personal factors, primarily the lifestyle you wish to lead during retirement and the age you wish to retire. You may need to consider additional pensions or long-term investments to retire comfortably and / or at a time you prefer.

How do Taylor James advisers recommend pensions and investments?

Our advisers assess your personal situation, individual preferences and retirement goals to recommend different pension or investment options. Our team equips clients with the correct knowledge to make informed decisions. We do not pressure clients into choosing a certain type of pension or investment. Our advisers will always make clients aware of any drawbacks or risks of a pension product or investment option, respectively.

At what age should you get pension and investment advice?

You can get pension and investment advice at any age. We offer our pension and investment advisory services to people of all ages without discrimination. We never judge people for choosing our services at a young or older age and only focus on providing the best possible advice for their situation. Do not hesitate to contact our advisers to get started. 

Is a pension or investment better for retirement?

There are pros and cons of using a pension or investment to fund retirement. These are best discussed with a financial adviser who understands your exact situation and retirement goals. Some retirement planning strategies will include both pensions and investments. The best option depends on the individual, their retirement goals and risk tolerance. 

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FAQs

How much will you need to retire in the UK?

Although the UK state pension should theoretically provide enough money for a comfortable retirement, this isn’t always the case. The exact amount you need to retire will depend on personal factors, primarily the lifestyle you wish to lead during retirement and the age you wish to retire. You may need to consider additional pensions or long-term investments to retire comfortably and / or at a time you prefer.

How do Taylor James advisers recommend pensions and investments?

Our advisers assess your personal situation, individual preferences and retirement goals to recommend different pension or investment options. Our team equips clients with the correct knowledge to make informed decisions. We do not pressure clients into choosing a certain type of pension or investment. Our advisers will always make clients aware of any drawbacks or risks of a pension product or investment option, respectively.

At what age should you get pension and investment advice?

You can get pension and investment advice at any age. We offer our pension and investment advisory services to people of all ages without discrimination. We never judge people for choosing our services at a young or older age and only focus on providing the best possible advice for their situation. Do not hesitate to contact our advisers to get started. 

Is a pension or investment better for retirement?

There are pros and cons of using a pension or investment to fund retirement. These are best discussed with a financial adviser who understands your exact situation and retirement goals. Some retirement planning strategies will include both pensions and investments. The best option depends on the individual, their retirement goals and risk tolerance.