Offshore Savings Account

Transcription

1 Offshore Savings Account Client Guide Investing in your future

2 Saving for the future Choose a level of investment which is both affordable and meets your saving objectives. See page 4 A wide range of investment choices The Offshore Savings Account offers you access to over 15 0 investment funds. See page 5 Easy access Four easy ways to access your investment. See page 6 Getting the most from your investments Why an Offshore Savings Account may be a suitable investment for you and deciding who will benefit from your policy. See page 7 2 Offshore Savings Account Client Guide

3 About Canada Life International Limited (CLI) CLI is based on the Isle of Man a jurisdiction recognised for its stable government, strong regulatory controls and policyholder protection measures. CLI was established in 1987 and is the offshore operation of the Canada Life Group. In 1987 CLI was a founder member of the Association of International Life Offices (AILO) an association of offshore companies supplying insurance and investment services in many areas of the world. The offshore market has grown dramatically and today member companies have more than 189 bn of client funds under management, held within cross-border life insurance products*. This increase in popularity in offshore investment has been reflected in the growth of CLI. Canada Life combined offshore assets under administration bn bn bn bn bn bn bn bn bn bn bn bn bn bn bn s Source: Assets under administration for Canada Life International Limited and CLI Institutional Limited (CLII) 31/12/12 * Source: AILO 30 September 2012 International Life Awards 2014 Best overall range (offshore UK) International Life Awards 2014 Readers choice best international life company (offshore UK) Offshore Savings Account Client Guide 3

4 The Offshore Savings Account (OSA) a regular savings policy where you pay regular premiums to build up an investment fund. designed for medium to long term savings and can be used to save money for, amongst other things: your retirement; your children or grandchildren s future; school and university fees. Minimum premiums Regular contributions (known as premiums) to the OSA are payable on a monthly or yearly basis. Clients may also make one-off single contributions. The policy can be denominated in sterling, US Dollars, or Euro. For US Dollar or Euro premiums the currency equivalent will apply. Initial minimum premium Monthly Yearly Single 500 6,000 7,500 Additional minimum premium(s) Monthly Yearly Single 125 1,500 7,500 These minimum premium amounts are net of any adviser charge deductions which you have asked us to pay to your professional adviser. Saving for the future Investing in an OSA is an excellent way of making: regular monthly investments; or regular yearly investments; and single premium investments. You can choose a level of investment which is both affordable and meets your individual saving objectives. 4 Offshore Savings Account Client Guide

5 Building on your Individual Savings Account investments The OSA is popular with people who already have an Individual Savings Account (ISA) and may have reached their annual limit. The OSA will allow you to continue making regular investments and diversify your portfolio. A wide range of investment choices The OSA provides you with a wide range of funds to suit your investment needs. You can choose to invest in up to ten funds from our core range of over 150 investment funds. The funds are managed by some of the world s largest and most respected fund managers, offering you the opportunity to create a truly diverse investment portfolio. In selecting the funds that form the core investment range, we have looked to provide a wide range of funds that meet with today s investors needs. Whether you are looking to take advantage of the growth potential of the stock market with equity based investment funds, or looking for a steady and more reliable return from your chosen investment funds, we have a wide range of investment funds including: major asset classes: UK Equity; International Equity; Fixed Interest; and Property major geographical regions: Asia, China, Europe, Japan, Latin America and North America A full range of core funds are available on our website, or via your professional adviser. Past performance is not a guide for the future. The value of units can fall as well as rise. Currency fluctuations can also affect performance. You may not get back the full amount of your investment. Switching funds You can switch between any of the funds at any time (maximum 10 funds can be held at one time). All switches are free of charge. Not all regular premium investment products are this flexible. Offshore Savings Account Client Guide 5

6 Easy access You can access your investments in a number of ways: taking regular withdrawals every year, every six months, every three months or every month of 50 or more; taking one-off withdrawals at any time of 200 or more; surrendering one of your ten identical sub policies; fully surrendering the whole policy. You must leave at least 1,000 plus any outstanding charges in the policy. If you fully surrender the whole policy then we will deduct any outstanding establishment charges before the value is returned to you. Death benefit The OSA can be set up with a single life assured or multiple lives assured. When the last life assured dies we will pay the death benefit. This will be the value of the OSA less any outstanding charges plus 100. Built in flexibility You may increase your regular premiums to suit your circumstances at any policy anniversary after your minimum contribution period of three years has ended. You can stop your premiums without penalty at any time. However, if you stop paying your regular premiums during your minimum contribution period we will continue to take the establishment charges until the end of the contribution period and any initial adviser charge deductions, you have asked us to pay to your professional adviser, will stop. Further details are available from your professional adviser. 6 Offshore Savings Account Client Guide

7 Getting the most from your investments In addition to the reasons already mentioned, there are a number of tax reasons why an OSA may be a suitable investment for you: Tax efficient investments/funds in onshore investment policies are subject to tax on all income and gains. Offshore policies, such as OSA, grow virtually free of tax. Tax may be payable when the OSA is cashed in and it is possible to transfer ownership of your OSA to a non or lower rate tax payer before cashing it in; Tax deferred income you can withdraw up to 5% of your premiums (regular and single) every policy year, for up to 20 years without any immediate liability to tax. If you do not use your allowance in a particular policy year, you can carry it forward to future years. The information regarding taxation is based on our understanding of current legislation, which may be altered and depends on the individual circumstances of the investor. We recommend you seek your own independent tax advice. Deciding who will benefit from your policy You can place your OSA in one of our range of trusts for your children or grandchildren. As a trustee you would have complete control over: how the money is invested; and how much is withdrawn and when. By placing the OSA in a trust you can also reduce the inheritance tax payable on your estate on death and pass a greater percentage of it to your chosen beneficiaries (typically this will be your children or grandchildren). Paying your professional adviser If you decide to appoint a professional adviser or fund adviser then they are likely to charge for their services. Fees can vary and the level will be agreed between you and your adviser. We can facilitate the payment of these fees. Please refer to our Guide to paying your professional adviser Offshore (form 6992) for popular payment methods. Offshore Savings Account Client Guide 7

8 You can contact us at: Address Adviser Support Team Canada Life International Limited Canada Life House Isle of Man Business Park Douglas Isle of Man IM2 2QJ Phone +44 (0) Fax +44 (0) Website Canada Life International Limited and the Offshore Savings Guide offer you the flexibility, support and service to meet your changing needs. Canada Life International Limited, registered in the Isle of Man no Registered office: Canada Life House, Isle of Man Business Park, Douglas, Isle of Man IM2 2QJ. Telephone: +44 (0) Fax: +44 (0) Member of the Association of International Life Offices. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority. Canada Life International Assurance Limited is authorised and regulated by the Central Bank of Ireland R