With-Profits Bond

A simple way to invest a lump sum for the years ahead

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Why take out a With-Profits Bond?

Our With-Profits Bond allows you to invest a lump sum in our with-profits fund. The fund aims to increase the value of your investment over the medium to long term through the addition of bonuses which may be paid depending on the performance of our with-profits fund.

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 life policy. You may also buy one for a child or grandchild under the age of 16.

About our With-Profits Bond:

 

  • The minimum investment you can make is £2,500 per policy. The maximum investment is £250,000 per policyholder. The With-Profits Bond is a medium to long term investment which means it should be kept for five years or longer.
  • At the outset we will enhance any money invested by 5%, so for a £2,500 policy we will add £125 to your investment. The policy also comes with a death benefit which pays out a minimum lump sum of 101% of the original investment, adjusted for any withdrawals made.
  • Deductions will be applied to certain withdrawals.

Where is your money invested

Your money is combined with money from other investors and is invested in our with-profits fund in a mix of company shares, property and fixed interest gilts and bonds. This diverse portfolio helps to spread the risks and reduce the impact on the fund should any category of investment underperform.

Who might it be suitable for?

The With-Profits Bond might be suitable for someone who:

  • Wishes 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, and 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 and the deductions which will be applied.
Who might it NOT be suitable for?

The With-Profits Bond might NOT be suitable for someone who:

  • Does not want 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 and the deductions which will be applied.

Next steps

Before applying please read ‘Your Policy Explained’ in the pack below which contains important information to help you decide if the policy is right for you.

Please note: To read or print a PDF file, you must have the Adobe Acrobat® Reader installed:
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With-Profits Bond
Information Pack
Download application form
Apply online

Call one of our team

We can explain all the important details and the options available. Call us on: 0333 014 6244.

8am to 6pm Monday to Friday excluding bank holidays. Calls are recorded for training and quality purposes.

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