MetLife Europe is launching a new investment bond offering capital, withdrawal and death benefit guarantees.
A single premium unit-linked insurance plan, the bond will provide a choice of guarantees with a minimum investment of £10,000 and terms ranging from seven to 20 years, the company says.
Investors have the potential to lock-in gains every two-and-a-half years and are guaranteed to receive back at least their initial investment minus any withdrawals. They can also withdraw up to 5% of their initial investment each year free of charge, MetLife explains.
Dominic Grinstead, strategic development and marketing director of MetLife's UK Retirement & Savings business, says the company believes 2009 will be the year of the guarantee with the demand for these products growing strongly in the UK long-term saver and retirement planning market.
Grinstead adds: "Investment bonds have a strong part to play in delivering the investment solutions that clients and IFAs are looking for and we have designed our Guaranteed Investment Bond to help in that process of reinventing the bonds market. Guarantees really are the key differentiator."
Clients opting for the bond will invest all their money initially in funds offering the Secure Capital Feature (SCF). These include a range of Managed and Index Portfolios, which Morningstar helps manage.
Those clients not choosing the SCF will invest in the standard MetLife Investment Bond which offers additional portfolios including best of breed funds and index vehicles.
Metlife has also responded to concerns surrounding inheritance tax with the launch of a guaranteed loan trust.
It will guarantee investors will receive the return of their initial loan over a 20 year period with investment lock-ins. Beneficiaries may also receive a guaranteed lump sum.
The policy can have a maximum of 10 lives assured. There is no minimum age for lives assured. AMC is 0.45% and guarantee charges start at 0.85%.IFAonline
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