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Executive Redemption Bond

The Executive Redemption Bond is a flexible lump sum investment. It allows you to take advantage of a wide range of investment opportunities and offers the convenience of holding all your assets in one portfolio.

Benefits

Ability to hold an extensive choice of assets in your policy.

Option to delegate fund management responsibilities by appointing a fund adviser.

Option to select a custodian by using the selected custodian facility.

Easy access to capital – total or part surrender at any time with the option to take regular withdrawals to provide an 'income'.

Competitive choice of charges.

Paperwork and record keeping made easy.

Invest and denominate your policy in one of a range of the world's major currencies.

An early encashment charge may apply if the Bond is encashed in the early years.

 

Risks

The value of fund units can go down as well as up and investment growth cannot be guaranteed.

This means we cannot guarantee the amount you get back when you cash in your account.

If you cash in this account early, or take withdrawals that exceed the growth, you may get less back than you paid in.

If you invest in a fund that holds investments in another currency, there may be additional risks because of exchange rate fluctuations.

 

Tax-efficient growth

As Royal Skandia is located in the tax-efficient international finance centre of the Isle of Man, your investment will grow virtually tax free.

Royal Skandia is not currently liable to income tax, capital gains tax or corporation tax on its funds linked to policies. Some dividends may be subject to a tax deduction in the country where the income was produced, but once inside a Royal Skandia policy the investment can accumulate free of tax.

Thanks to this, your investment will grow more efficiently.

Your personal tax consequences will depend on many factors, and you may have a personal tax liability in respect of your policy. This will largely depend on your country of residence. It is therefore important that you seek professional advice before proceeding with any investments.

 

Policyholder protection and peace of mind

Of all the major offshore centres, the Isle of Man is one of only a few that has a statutory compensation scheme for life assurance companies. This means that Royal Skandia investors benefit from protection wherever they reside.

 

Who is eligible?

The minimum and maximum age limits for investment are 18 and 89 respectively. The Executive Redemption Bond is designed for international investors.

 

Minimum premiums

  • Minimum initial premium: £50,000 / $75,000 / €75,000 (or currency equivalent).
  • Minimum additional premium: £5,000 / $7,500 / €7,500 (or currency equivalent).

Premiums are accepted in most major currencies.

 

More information

This page is only intended as a general indication of the Executive Redemption Bond's structure. More information on the Executive Redemption Bond can be found in the Key Features Document below. We have also attached the Royal Skandia Dealing Instruction Form for our portfolio bonds.

Key Features of your Executive Redemption Bond
Dealing Instruction Form pdf

To download this Key Features Document PDF, you need to have Adobe® Reader® installed - Get Adobe Reader

For more information, and advice on the suitability of this Bond, please contact your financial adviser.

Investors should be aware that the value of unit-linked contracts is not guaranteed and the prices of units can fall as well as rise. Where a fund invests in securities designated in a different currency to the fund, the value of the fund may rise and fall purely as a result of exchange rate fluctuations. Royal Skandia can give no guarantee that tax reliefs and the tax treatment of funds will remain the same in the future. The value of any reliefs will depend on individuals' circumstances.

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