Is Prudential New World Life Account Taxable?

lindabea

dunstonh said:

Hello Dunstonh, in an attempt to help the OP, my partner also has one of the New World policies with the PRU.  That's how the PRU refer to it in all communications. 

I think that must be a marketing name they use as I have never come across that name in all my years seeing countless Pru plans.

Unless there are other types of policies, the one my partner has is an insurance linked investment bond where you can withdraw 5% annually of the investment amount.  You often respond with helpful replies to the frequent questions that come up on this forum.  Generally, I think you seem to regard these policies as good investments as they have many benefits, although, 

That would make it an onshore investment bond (offshore would be Pru International).    There have been many versions of investment bonds over the years.    Some are very good value and very good steady eddies.     Some are expensive and low quality (e.g. things that used to be included in the single AMC getting charged extra or not available at all).     

I agree with the OP - this year's bonus was somewhat meager!!     .  

With bonds having their worst period in over 100 years (negative from Nov 2021 through to October 2023) that is somewhat inevitable.  

Dunstonh I accept your point about bonds have performed badly in the last few years, and I know the policy is called an investment bond, but aren't the underlying investments mostly equities?? So on that basis, performance should not be correlated to only bonds and I would have expected a much better return than the odd £20 that my partner received on his policy. Would appreciate your comments.   

dunstonh

Dunstonh I accept your point about bonds have performed badly in the last few years, and I know the policy is called an investment bond, but aren't the underlying investments mostly equities??

Modern investment bonds have whole of market access and you can pick your investments.   The old With Profits fund investment bonds are heavier in bonds (corporate bonds, global bonds and gilts) more than equities.   Typically, depending in which Pru WP fund you are invested in, around 40-60% equities with the remainder in bonds.