Unit Linked Bonds
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A Unit Linked bonds is a single premium Whole of Life assurance policy, where a once-off premium is invested in secure units in one or more Unit funds.
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Unit-linked bonds provide capital growth only. Income requirements could be met through regular withdrawals.
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Unit-linked bonds have different funds that you can invest in. Each fund has individual risks.
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Some funds offer a form of investment guarantee that can reduce risk.
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Funds can be matched to your risk tolerance.
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Transfers between funds are allowed.
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Typically there is no investment term, however there are initial fees to overcome and there could be exit fees. Management fees apply.
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Funds are priced daily; there is a risk of capital loss upon an exit.
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Funds do accumulate tax-free, however there is an exit tax on capital growth. There is no USC or PRSI.
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Minimum investment typically starts at €20,000.
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Unit-linked bonds are not for short-term savers. Unit-linked bonds are for investors who can accept a level of risk and tie-up their capital for minimum of 3 to 5 years.
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