Guaranteed Investment Bond

MetLife Europe Limited is a member of the MetLife group of companies. The MetLife companies (MetLife, Inc. and its affiliates) operate around the world under the brand MetLife. The MetLife companies are a leading provider of insurance and other financial services to individual and group customers.

In June 2006, we interviewed 100 UK financial advisers about their views on financial strength and its importance. More than three quarters (79%) believed the strength of an organisation to be important to their clients. And more than half (54%) had rejected a financial product because of concerns over financial strength.

MetLife has gained some of the highest ratings from the  major ratings agencies see the About MetLife section for more information.

This explains why we have more than 70 million customers around the world and 49,400 employees to look after them. It also shows why we featured as high as 73rd position in Forbes Global 2000 list of the world's largest companies in 2008. In December 2007 we also received the accolade of America’s best managed insurance company in Forbes Magazine’s list of the best big companies in America.

No!

• Maximise their potential growth in capital
• Limit or eradicate any risk of capital losses
• Provide tax-efficient ‘income’
• Mitigate any potential Inheritance Tax liability

For clients who want to protect their investment against market falls, the Secure Capital feature is a must. When clients invest in a portfolio with the Secure Capital feature, their initial investment is set as the Secure Capital Value or higher for longer-term guarantees. No matter what happens to the fund value and the markets, the Secure Capital Value is what will be paid to the client at the end of the selected guarantee term. The Secure Capital Value is reduced by taking withdrawals.

But that’s not all.We also provide your clients with the option to choose whether they would like the opportunity to lock in potential investment gain either annually (up to a 10% cap) or every 21/2 years (uncapped). On their selected review date, we will carry out a review of the current fund value and may increase the Secure Capital Value if the fund has grown sufficiently.

• Guarantee the income amount now for when retirement commences
• Guarantee an annual step-up of 3% of the amount invested
• Offer the potential for regular step up if the fund is higher than the guaranteed amount

Suddenly, paying for something that offers these benefits when a client can’t afford to take risks seems like good value.

• People who have built up significant funds and wish to protect themselves against market falls
• People who have retired and taken up to 25% of their pension fund as a tax-free cash lump sum and left it in the building society
• People with large sums in cash that want a better return
• People that want to mitigate any potential Inheritance Tax liability

The idea of guarantees may not, at first glance, appear new to the UK but MetLife guarantees are different.

Traditional guarantees protect capital by limiting exposure to equities, which restricts the potential for growth. The MetLife guarantees allow clients to invest in their chosen level of equity exposure, preserving the opportunity for growth that this brings. Alongside this investment, clever use of derivatives acts as an insurance policy against market falls meaning a client’s original investment is secure. What’s more, over time clients can lock in earlier gains, increasing the amount of the guarantee.

Clients may take the product to provide capital growth. The guarantee will allow them to invest at any time knowing their funds are secure – removing a key investment variable – timing. Reviewing your client's fund either annually or every 21/2 years, depending on their selection, can result in in step-ups that lock in any potential fund growth (less withdrawals).

Clients can supplement their income by taking advantage of the 5% tax-deferred withdrawal allowance which effectively will allow them to withdraw an ‘income’ without an immediate liability to income tax.

Clients can also use the bond to mitigate any potential Inheritance Tax liability through use of the MetLife trusts available.

Yes!

Clients can switch out of and in to the capital guarantee, although switching back is only allowed after six months and is subject to the guarantee terms applicable at the time.