Insurance Bond


DEFINITION of 'Insurance Bond'

An investment instrument that is offered by life insurance companies. The investment is provided in the form of a single premium life insurance policy. These bonds are often used as investments in the U.K. and other countries.

Also known as an "investment bond".

BREAKING DOWN 'Insurance Bond'

Insurance bonds are very simple investments that allow investors to save for the long term. Investors who hold their bonds for more than 10 years without making any withdrawals in that time are able to receive their earnings tax free.

  1. Equity Risk Premium

    The excess return that investing in the stock market provides ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Tax Shield

    A reduction in taxable income for an individual or corporation ...
  5. Premium

    1. The total cost of an option. 2. The difference between the ...
  6. Insurance

    A contract (policy) in which an individual or entity receives ...
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