P566ORACLE 566 Mon 3 Feb C4 1712:18  1/5   THE A-Z OF    INVESTMENTS   I is for Insurance company investments Most of us are familiar with term insurance ─ a life insurance policy, which pays out to your family if you die, for example. However, in the last 30 years, insurance companies have introduced a number of other policies which, despite offering some limited life insurance, work more like investments. Sue Gorska looks at some of the options. more follows > Your Money ...560 Feature ...567 HOLIDAY INDEX *** 580

P566ORACLE 566 Mon 3 Feb C4 1714:54  2/5   THE A-Z OF    INVESTMENTS   Some insurance company investments... Growth or income bonds You invest a lump sum with an insurance company (a minimum of £500─£2,500) for a set number of years in return for a fixed rate of interest. The interest is paid yearly with income bonds while growth bonds pay out when the bond matures. Basic rate tax is deducted before you get the interest and non-tax payers can't claim this back. Watch out when investing in companies based outside the UK ─ only UK authori- sed companies are covered by the Policy Holders' Protection Act. more follows > Your Money ...560 Feature ...567

P566ORACLE 566 Mon 3 Feb C4 1711:07  3/5   THE A-Z OF    INVESTMENTS   More insurance company investments... Unit-linked regular saving plans You save a set sum for an agreed amount of time. After the company has deducted a charge (about 5½% of your money), the rest buys units in an investment fund run by the insurance company. You'll need a minimum of £5-£100 a month. After, say, 10 years, your units are cashed in, hopefully worth more. Their value can, of course, go down as well as up, depending on how well the inves- tment fund performs. more follows > Your money...560 Feature...567

P566ORACLE 566 Mon 3 Feb C4 1711:21  4/5   THE A-Z OF    INVESTMENTS   More insurance company investments... Endowment policies with-profits You save a set amount for at least 10 years in return for a fixed amount of life insurance, plus regular bonuses ─ called reversionery bonuses. When the policy matures (or the insured person dies) you get the fixed sum assured, plus bonuses, plus (sometimes) a terminal bonus. The person to be insured must be healthy and, if it's not you, it must be someone in whom you have an 'insurable interest' ─ like a husband or wife. more follows > Your money...560 Feature...567

P566ORACLE 566 Mon 3 Feb C4 1712:02  5/5   THE A-Z OF    INVESTMENTS   More insurance company investments... Annuities Really only suitable for men over 70 or women over 75, an annuity involves investing a lump sum with an insurance company in return for an income for life. You can take an immediate annuity or a deferred one, which starts paying out at a later date. Once you've handed over your money you can't change your mind. The income is fixed so the real value is eroded by inflation but the tax rules make it a better deal the older you are. Next week: J is for Jewellery more follows > Your Money ...560 Feature ...567