Investment Planning using an 'Insurance Wrapper'

Being an expatriate or an international investor, keeping on top of your investment portfolio can be complicated. Planning on how and where to invest should be a well thought out process taking in to account your risk profile, investment objectives, country of residence, tax & estate planning and time horizon.

With correct planning our clients enjoy substantial benefits by investing through an 'insurance Wrapper' available from some of the worlds largest financial and most secure insurance groups such as Utmost Wealth Solutions, SEB International, Old Mutual located  in EU Juristictions such as Luxembourg, Ireland and Malta.

Some of the key benefits include the following:

Tax-efficient Investments

An expatriate who becomes tax resident in a second country may wish to consider cross-border investments to manage their tax liability and/or control when tax charges are made. For example, in Portugal an International Life Insurance Wrapper held for longer than eight years are treated more favourably for taxation purposes than mutual funds and other similar investments, while investors looking for an actively managed proposition will find that their assets are sheltered from capital gains taxes in a Life Insurance Wrapper.

Investments in a cross-border life product grow virtually free of tax throughout the time the product is held, suffering only a small amount of irrecoverable withholding tax on investment funds located in certain countries. They allow policyholders, in general, to manage when they take benefits and potentially to defer the benefits to a period that may be more advantageous from a taxation perspective.

Investment Choice

Cross-border Life Insurance Wrappers generally feature a wide range of funds specifically tailored to fit with expatriate clients preferences and attitude to risk. They also offer access to international and specialist fund managers which may not be available in domestic fund and insurance markets. 

Non Habitual Residents in Portugal

Expatriates who are non habitual residents in Portugal for tax purposes may be advised to use crossborder investments, including cross-border life products, rather than domestic Portuguese investments, to keep their assets outside of Portugal and avoid creating Portuguese-sourced investment income.

Estate Planning

Expatriates, such as UK domiciled individuals looking to mitigate UK inheritance tax, may wish to consider estate planning options such as a cross-border bond held in an appropriate trust, if UK or Irish law applies to the policy. If the policy is written under the laws of another EU country, a policyholder can normally nominate beneficiaries to receive the policy benefits.

Designed for Expatriates

Most companies offering cross-border life products are subsidiaries of global financial services companies specialising in dealing with expatriates on a multi-lingual, multi-currency basis.

Cross-border products can offer significant benefits over and above what might be available in the local domestic markets, particularly in relation to product features, investment flexibility and investment choice.

The cross-border life companies are regulated in first class jurisdictions which benefit from strong regulatory controls.

A cross-border product has the flexibility to adapt to changes in your individual circumstances, including changes in your residency status.

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