Unit Linked Savings

A Unit linked savings plan is a life assurance policy to which the policyholder pays a regular premium usually monthly, which notionally buys units in one or more unit funds operated by the life company. The policyholder may encash these units at some stage in the future, to provide a capital sum to meet some financial need.

Purchasing units

As each regular premium is paid into the plan, it purchases units of the life company’s unit fund at the Offer price. As the number of units attaching to he plan increases so does the encashment vale of the pan therefore building up a capital sum.

Savings term

Most unit linked plans do not have a fixed savings term. Most plans are open ended- can encash the plan at any time. However, Life assurance savings plans are not suitable for short term savings and the normal recommended minimum savings term is usually 10 years. This is because of the charges deducted from the plan at the outset and the fact that the premiums are usually invested, through the unit fund, in stocks and shares which can fluctuate in value.

Encashment Value

The encashment value at any time is usually calculated as:

No of Units * Bid price

Life Cover

 A unit linked savings plan issued by a life assurance company is a life assurance policy; it must provide some death benefit. I.e.

• A specified level of cover or

• The encashment value of the plan at the date of death {KomentoDisable}

Guaranteed Bonds

This is a single premium whole of life policy which provides:

• A guaranteed return of the capital invested at the end of a specified term, usually 5 years+ and

• A guaranteed level of capital growth at the end of the term, to which exit tax will be applied.

So if you want to maximise capital growth and wish to defer the return until the end of the policy term you should consider a Guaranteed Growth Bond.

 Early encashment

 Guaranteed Bonds are designed to provide a guaranteed return over a fixed term, usually 3 or 5 years, either in the form of a regular payment or as capital growth. No guarantee is given on encashment prior to the maturity date of the policy, and as such early encashment is usually subject to a penalty.

 Returns

 The returns offered by Guaranteed Bonds at any time will be strongly influenced by the level of interest rates ruling on short dated Government Bonds.

The investment must be maintained for the full term, in order to obtain the full guaranteed return promised.Access to the investment during the term of the bond is on unguaranteed terms and could involve a loss for the investor.{KomentoDisable}

What should I do in order to find out what is the best way to maximise the return on my investment?

As there is such a wide range of investment products available, you should talk to one of our qualified, experienced experts.

They will review all of your options and help you choose the one that best suits your requirements.

Many investment funds are only available for a short period, so you should act now to avail of the best opportunities.

Use the quote button (above)

or telephone 1890 666 666

Tracker Bonds

Life Assurance companies offer structured investment bonds (tracker bonds), that aim to allow investors participate in equity market returns with the benefit of a high level of capital guarantee. They are fixed term bonds, usually between 3 to 6 years.

Structure

The investment made by an investor in a deposit Tracker Bonds is split into three components:

• Most of the deposit is placed with the Bank at a fixed rate for the term of the Bond, to provide the level of capital guarantee promised.

• Part is used by the Bank to purchase a derivative from a large international investment bank, who in return undertakes to pay the Tracker Bond bonus amount, if any, to the bank at the end of the Bond term.

• The balance of, the investment amount is taken as initial charges; part of which may be used by the Bank to pay commission to deposit brokers.

So a Tracker Bond is essentially a fixed rate term deposit as, usually, more than 80% of the investment amount is in fact invested in a fixed interest term deposit, for the term of the Bond.

Access to funds

Tracker Bonds are illiquid investments i.e. there is no facility for the investor to encash the bond before the maturity date. The funds are tied up for the term of the Bond.

Limitations

• The investment must be maintained for the full term in order to obtain the full guarantee and bonus promised.

• Generally no access to the investment during the term of the bond. {KomentoDisable}

With Profit Bonds

A with profit whole of life policy is a form of traditional with profit which provides a guaranteed sum assured payable on death whenever that occurs, in return for a fixed premium. The premium may be payable throughout life or may cease at a specified age i.e. 65.

The life company actuary works out the profits of the life company’s with profit fund each year and then decides on the bonus to be added to it with profit policies for that year. There may also be a terminal bonus added on maturity of the policy.

Encashment Value

A with profit whole of life policy acquires a surrender/ encashment value i.e. a cash sum which the life company pays if the policyholder decides to stop paying premiums and terminates the plan. The encashment value gradually builds up over the years.

 At mypremium.ie we can choose from a huge range of Product Providers to tailor the best plan to meet your specific needs. {KomentoDisable}

Financial Review

A Financial Review is a full check up of all your financial outgoings the purpose of which is to ensure that you are spending no more than necessary and getting the best value for your money. Your life protection, serious illness, income protection, retirement provision, savings both short and long term will be accessed and you will be provided with a full report of the findings.

What documents do I need in order to avail of a Financial Review?

Any existing financial documents such as bank statements, mortgage statements, life protection policies, car and home insurance policy documents together with any insurance documents.

How much will it cost me?

Not having a Financial Review could cost you thousands. Most reviews lead to substantial savings. Your first appointment is FREE and a detailed account will be provided to you at this meeting.

How long will it take?

Your first meeting will take approximately 1 hour and your second should take approximately 45 minutes. Don’t delay –call 1890 666 666 and make your FREE appointment today.{KomentoDisable}

• Stocks and Shares

• Investors you may wish to invest in shares on a quoted company on the Stock Exchange which you hope will yield a good return.

• Assessing Share Values

• The return can come from one or both of the following:

• Dividend Income- if the company pays regular dividends

• Capital Growth- if shares are sold at a higher price than you originally paid

• It should be pointed out that shares are risky investments as in general there is no guaranteed value payable for the shares at any time. Shares are open ended investments whereby they do not have a fixed maturity date.

• Stock Market Prices

• A share quoted on the Stock Exchange will usually have two prices at any time:

• The Bid price- the price at which investors are ‘’bidding’’ to buy the shares

• The Ask price- the price at which holders of the shares are ‘’asking’’ in order to sell the shares

• Information on shares, prices, dividend yields, stockbrokers can be obtained on the Irish Stock Exchange website: www.ise.ie .

• Investing in stocks and shares through mypremium.ie will be on an Execution only basis.{KomentoDisable}