Guaranteed Investment Bond

Overview

The Guaranteed Investment Bond is an investment bond which gives you the opportunity for growth as well as peace of mind that your initial investment is guaranteed whatever happens to the market.

What’s more, the Guaranteed Investment Bond is a great vehicle for Inheritance Tax planning when used with a Trust.

A range of guarantee features

To offer you real peace of mind, you can be assured that by investing in MetLife’s unique guarantees there is never a downside to your investment, only an upside.

If you are asking yourself these questions then the MetLife Guaranteed Investment Bond could be for you:

• How can I get a better return than bank deposits now interest rates are so low?
• How do I make sure that I get back at least what I invest?
• How do I secure my capital but not lose out when the stock market starts to recover?
• How do I invest tax-efficiently?

To find out more about our Guaranteed Investment Bond speak to your Financial Adviser.

How It Works

The MetLife Guaranteed Investment Bond allows you to secure your initial investment and protect it against market downturns.

Secure Capital Value

By choosing the Guaranteed Investment Bond, you will be able to secure your initial investment, protecting it from market downturns. We refer to the amount you initially invest as your Secure Capital Value. Provided you make no withdrawals, you will never get back less at the end of your term, than originally invested.

Secure Withdrawal Reviews

Each year, on the anniversary of your initial investment, we will undertake a Secure Capital Review. At this time, we will compare your Secure Capital Value with your actual fund value. If your fund value has grown beyond your Secure Capital Value, we will lock-in this new higher figure, and in doing so, increase your Secure Capital Value.

If however the market has dropped and your fund has fallen in value, your existing Secure Capital Value remains untouched – remember it’s guaranteed.

Please note that if you have taken withdrawals this will reduce the amount that could be locked-in and therefore your Secure Capital Value..

Secure Withdrawals

Each year you can choose to take secure withdrawals from your Guaranteed Investment Bond, of up to 5% of your original investment, which won’t be immediately taxed as income*. And, if you take secure withdrawals of no more than 5% each year, your withdrawals are guaranteed for the full term of your guaranteed investment, irrespective of the funds remaining. If you choose to withdraw money, it will reduce your Secure Capital Value by the same amount. You can withdraw more than 5% every year, but this may be taxed and your Secure Capital Value will reduce proportionally. You may also incur a charge. Make sure you refer to the Guaranteed Investment Bond Key Features Document and speak to your Financial Adviser for further details on how this works and how it may impact your investment..

*The term income with reference to the Guaranteed Investment Bond refers to withdrawals of capital.

Tax Maximiser Option

This option is particularly useful if you want to withdraw money from your Guaranteed Investment Bond tax efficiently, as it gives you the potential to take more money each year. The option works if your Guaranteed Investment Bond has grown in value. If this is the case, you can reinvest this higher amount and it will be this larger value that your 5% annual allowance will be calculated from.

You can use this option when all of your investment is in the Secure Capital Option, but remember that if you do make any withdrawals, your Secure Capital Value will also reduce. You can choose to exercise the Tax Maximiser Option on one occasion only at any policy anniversary after the first five years from your initial investment.

You should seek tax advice before exercising this option, as it will lead to a chargeable event which could mean you have to pay tax as a result.

Guarantee your Investment for your Beneficiaries.

With the Guaranteed Investment Bond, your beneficiaries will also benefit from the safety net of our guarantees and won’t suffer if the value of your investment suddenly drops due to market volatility. Your beneficiaries are guaranteed to receive either your Secure Capital Value, less any guaranteed withdrawals made, or 100.1% of your fund value, whichever is higher. And, if you have taken out the Guaranteed Investment Bond on a joint life basis, the guaranteed death benefit is guaranteed to be paid on the first or second life to die, depending on the life cover basis you choose at outset.

FAQ

*The term ‘income’ refers to withdrawals from capital;