Today Life Insurance is the best vehicle for Asset Protection, wealth preservation and transmission.
Portfolio bonds are at times referred to as “insurance wrappers”. This stems from the fact that a portfolio bond literally “wraps” the protective legal shield of a variable life insurance policy around an investment portfolio. The structure thus combines a life insurance contract and a bank account to create a holding vehicle through which investors can allocate and manage their funds in many different investment strategies.
Given it is a life assurance policy; there is a value payable on death. Though, this is usually a mere reflection of the value of the underlying investments. Generally, Asset Protector Insurance Bond secures only a minimum of life cover amounting to 101% of the value of the underlying account. This is paid out on the death of the last insured person included in the policy.
Life insurance policy has distinct attractions for those seeking a tax-efficient investment vehicle. Particularly in light of the EU Savings Tax Directive that impacts all European taxpayers without exception.
Asset Protector Insurance Bonds provide for tax benefits in most countries to varying degrees and for most EU taxpayers, the Asset Protector Insurance Bond offers a legitimate and tax efficient investment option.