What is an insurance bond?
An insurance bond is a Branch 21 life insurance product in which you invest a sum of money for a predetermined period. The interest rate is fixed at the outset and guaranteed for the agreed term.
This means you know in advance the interest rate at which your capital will grow, without your return being directly dependent on financial market fluctuations.
This combination of returns, security and predictability makes insurance bonds particularly attractive again today.
An attractive interest rate for your capital
An insurance bond offering a guaranteed interest rate of 3.5% is currently available.
This presents an attractive opportunity to put savings that are currently earning little interest to better use. You lock in the interest rate and know from the outset which guaranteed rate applies to your investment.
Of course, the term, costs and tax treatment also influence the final return. It is therefore important to consider the complete picture.
Tax advantages
In addition to the guaranteed interest rate, the tax treatment can also be an important advantage.
When a Branch 21 life insurance policy is held for the required period and meets the legal conditions, the returns may be exempt from withholding tax on investment income.
An insurance bond can therefore be attractive not only for its security, but also as part of a carefully considered approach to managing your wealth.
Combining security and returns
An insurance bond offers a relatively straightforward way to grow your capital over the longer term. You know the guaranteed interest rate in advance, and your return is not dependent on daily financial market movements.
Curious about what an insurance bond could mean for your savings? Feel free to contact us. Our experts will be happy to explore the options with you and prepare a personalised illustration tailored to your needs.
