What is Insurance Bond?

Question

What is Insurance Bond?

Answer 1

An insurance bond (or investment bond) is a single premium life assurance policy for the purposes of investment. Due to tax laws they are a common form of investment in the UK and some offshore centres.

Traditionally insurance bonds were with-profits policies and were often called with-profit(s) bonds. Since the introduction of unitised insurance funds they have often been marketed as unit-linked bonds or investment bonds.