Our With-Profits Bond allows you to invest a lump sum of money in our with-profits fund. The fund aims to increase the value of your investment through the addition of bonuses which may be paid depending on how it performs.
It’s an easy way to invest for the future and any UK resident who is over the age of 16 can buy one. You can take out a single or joint policy (perhaps for you and a partner). You can also buy one for a child or grandchild under the age of 16.
The minimum investment you can make is £2,500 and the maximum investment is £50,000 per policyholder.
At the outset we will enhance any money invested by 5%, so for a £2,500 policy we will add £125 to your investment.
A With-Profits Bond is a medium to long term investment which means it should be kept for five years or longer.
Your money is combined with money from other investors and is invested in our with-profits fund in a mix of company shares, property, cash and fixed interest gilts and bonds. This mix helps to spread the risks and reduce the impact on the fund should any category of investment underperform.
The policy also comes with a death benefit which pays out a minimum lump sum of 101% of your original investment, adjusted for any withdrawals made.
Who can take out a With-Profits Bond?
Any UK resident who is over the age of 16 can buy one. You can take out a single or joint life policy. You may also buy one for a child or grandchild under the age of 16.
A With-Profits Bond might be suitable for someone who:
Wants to invest a lump sum of money for at least five years
Would like to invest in a stocks and shares related investment but is not prepared to take the risk of investing directly into the stock market
Accepts the risks of investing in a with-profits fund that invests in equities, commercial property, and fixed interest securities (government and corporate bonds)
Wants the option to make withdrawals and is familiar with the tax treatment for withdrawals from the policy
A With-Profits Bond might not be suitable for someone who:
Is not prepared to invest a lump sum of money for at least five years
Wants an investment which has no risk to the capital or potential for growth
Is unfamiliar with the tax treatment for withdrawals from the policy
You must be aged 16 or older both to buy one for yourself or to buy one for a child under 16
The minimum investment for each With-Profits Bond is £2,500. The maximum you can invest in all With-Profits Bonds with us is £50,000 per policyholder.
Each year we’ll send you a statement showing any annual bonuses declared. We can provide you with a current surrender value at any time on request.
Yes you make a withdrawal at any time, however it has to be a minimum of £500 and you have to leave at least £2,500 in your Bond at all times.
You can withdraw up to 5% of the Bond's value each policy year without an immediate tax liability.
If you would like to learn more about our with-profits fund, please visit the With-Profits Fund section of our Existing Members page.
There you will find the relevant documents to help you understand what the fund is and how it works.
We take charges for the cost of managing and administering our fund, including fees we pay to fund managers. The charges are deducted from the fund and this will have an effect on the level of bonuses we are able to pay.
Yes, the value we'll pay out will be the higher of:
the value of the Bond as it stands on the date of death; or
101% of your original lump sum investment.
Any withdrawals you've made will be reflected in the amount we pay out.
Any other questions?
If there’s anything else you want to know or you’d like to talk through your options, please give us a call on 0333 014 6244 and we’ll be happy to help.
8am to 6pm Monday to Friday excluding bank holidays. Calls are recorded for training and quality purposes. Calls from UK landlines and mobiles cost no more than a call to a 01 or 02 number and will count towards any inclusive minutes.