Are life insurance bonds safe

Jonny0000

How likely are life insurance bonds to be effected by the global credit crisis? I was under the impression they were fairly secure, but there is a lot of fear ciculating in financial markets.

dunstonh

How likely are life insurance bonds to be effected by the global credit crisis?

I was under the impression they were fairly secure, but there is a lot of fear ciculating in financial markets.

life assurance bonds are just a tax wrapper that contains investments. They are not safe or risky. They are just a container for investments.

You can hold low risk investments, guaranteed investments and extremely high risk investments in teh life assurance wrapper in exactly the same way you can with ISAs, pensions and unwrapped investments.

Its your investment funds where the risk is.

Also, what fear are you on about? In the scheme of things, this current decline has been quite mild so far. The only ones predicting the end of the world is the media. The markets dropped by less than half what they did at the turn of the millenium thanks for the techs bubble crash/sept 11th and american accountancy issues. The last week has seen quite a recovery in a short period as the feeling is that the markets have generally priced in the worst of it.

missile

dunstonh wrote: »

Also, what fear are you on about? In the scheme of things, this current decline has been quite mild so far. The only ones predicting the end of the world is the media.

I was of a similar mind set but had not done the research to back it up.