Products and services
It is simple, one product, with 100 % control and flexibility.
Exclusive Investment Bond (EIB)
Life assurance policy
Minimum initial investment of USD 30,000 or currency equivalent
Flexible method of investing
Designed for medium to long term investments
Offers Clients a trading platform – CustodianTrader
Offers a variety of charging structures
Offers regular withdrawals
Our Exclusive Investment Bond provides a flexible method of investing the Policyholder’s money with the potential for growth over medium to long term. It is designed to allow the Policyholder’s capital to grow and to offer the option for the Policyholder to set up regular withdrawals.
Since the Exclusive Investment Bond is structured as a life assurance policy it may offer the Policyholder the opportunity to take advantage of several tax planning benefits, including arrangements that can help to reduce any tax liability on the death of the life assured. A life insurance policy has one or more “lives assured”, which means that the policy will come to an end when the person(s) whose life is covered by the policy dies.
With the Exclusive Investment Bond, the Policyholder has a choice of having one or more lives assured (up to six lives assured), to ensure the continuity of the bond. Where there is more than one life assured, the bond will end when the last person whose life is assured dies. Custodian Life will pay a death benefit of 101 % of the encashment value after notification and documentation of the death of the last life assured . With the Exclusive Investment Bond the Policyholder can enjoy significant investment freedom by spreading and varying investments across a wide range of funds and/or different assets, according to the Policyholder’s wishes, financial goals and the attitude to risk.
Custodian Life understands that our Clients have different financial and investment goals, and also different risk approaches depending on where in life they are. Therefore, we have designed a product, the Exclusive Investment Bond (EIB), to allow you to build a customized portfolio tailored after your needs. Rather than limiting your choice of investments by providing you with a defined range, you can choose any investment as long as it is acceptable to us. The beauty of open-architecture is that you can choose investments with varied geographic focus, for instance the UK, Europe, Asia, USA, Latin America, GCC (Gulf Cooperation Council) or BRIC (Brazil, Russia, India and China). You can also choose investments with a specific sector focus such as financial, healthcare, energy or telecommunications, to name just a few.
EIB is available to individuals, companies and trustees, who are not resident in the USA. Some restrictions will also apply to other countries, please contact us if you are in any doubt. Individuals need to be 18 years of age or older to apply for EIB. If the youngest life assured is 85 years of age or older, we cannot accept the application. The EIB policy type is set up as a life assurance policy (meaning that the policy continues until the death of the last life assured), it can be written on the following bases:
- Single life – There is only one life assured and when they die the EIB policy comes to an end.
- Joint life last death – There can be up to six lives assured and the EIB policy comes to an end when the last life assured dies.
There are five EIB policy currencies to choose from: Euro (EUR), Pounds sterling (GBP), Norwegian krona (NOK), Swedish krona (SEK) and US dollar (USD). Policy fees will be taken in your chosen currency. Initial and additional premiums paid into EIB can be made in any of the mentioned currencies above, provided that they can be easily exchanged for your EIB policy currency (we will do this automatically), and are subject to the minimum premium levels for your policy currency.
- The EIB policy will give you the opportunity to invest a cash sum and/or any existing acceptable investments you may hold with the aim of increasing the value.
- The EIB policy will allow you to link to a wide range of different investments, with the flexibility to switch between those investments at any time.
- The EIB policy will allow you to take withdrawals at any time.
- The minimum premium is of at least USD 30,000 (or currency equivalent) into your EIB policy.
- The minimum investment amount is USD 3,000 (or currency equivalent).
- EIB should be considered as a medium to long-term investment (five years or more).
- Requires a balance of 3% of your current policy value within the cash account.
- We must be informed of any changes to the Policyholder’s address, country of residence, citizenship or domicile as soon as possible after any change. This is also required for the lives assured.
Additional premiums can be paid into EIB at any time. Additional premiums can be set up with different charging structure using different contract periods and allocation rates in comparison to the initial premium.
Investment transfers can be deposited (subject to them being acceptable to us) directly into an EIB policy. To do this we require your power of attorney. When we possess all of the necessary documentation, we will transfer in the investments as required. An administration fee of USD 45 is charged per each investment transferred, plus any custodian charges.
Cash account exists on each EIB policy, and an EIB policy may have several cash accounts for different currencies. Any initial premium and investment exchange value is paid into the cash account before being linked to your chosen investments. The fees associated with EIB are taken from the cash account and it is also used for taking withdrawals. If investments linked to an EIB policy are sold, the cash proceeds will be paid into the cash account. In the same way, when linking an EIB policy to a new investment, the amount available in the cash account will be used to do this. It is important that a positive (3 % of the policy value) cash balance is maintained in the cash account to cover any fees and withdrawals. If the cash account has a negative balance we may, at any time, clear the balance by selling investments to which the policy is linked. Credit interest may be paid on positive balances and debit interest will be charged on negative balances. For current credit and debit rates on the EIB cash account, please contact us.
Valuations are accessible on your policy online on our website at any time, and can be downloaded as valuation statements.
A Discretionary manager can be appointed to your EIB policy. A discretionary manager, where appointed, is responsible for buying and selling investments linked to your EIB policy. They will charge their own fees for doing so.
Custodian Life is able to offer our Clients an award winning, hyper modern trading platform within our EIB. CustodianTrader allows you to build and manage your own portfolio consisting of all products available in the platform’s multi-product offering. With the combination of other investments in the EIB and in a tax efficient environment, we have created the industry’s most powerful investment tool that is dedicated to meet most of your needs.
CustodianTrader combines a secure environment with competitive real-time execution and real time pricing. Easily downloadable, enables trading across multiple asset classes, all from one single account. CustodianTrader offers access via Mobile App, Stationary Platform and Web based platform. Just to mention some of the products available via the CustodianTrader platform: Stocks, ETF’s, FX, Futures, Bonds, Hedge Funds, Options, Metals and Crypto products.
Benefit on death – On receiving written notification at our support and administration office of the death of the last life assured on an EIB policy, we will:
- Stop all regular withdrawals and any other actions due to take place
- Sell all of your linked investments and add the sale amounts to the cash account
- Calculate the final death benefit of the policy.
We will only pay out the death benefit when we have received proof of:
- The death of the last life assured
- That you, your estate or someone else has the legal right (“probate”) to the policy benefits
We will not pay out the death benefit until we have sold all linked investments and the sale amounts have been added to the cash account. We must also receive any additional Endorsements at our support and administration office before will pay out the death benefit.
EIB taxation – Custodian Life Limited is subject to Bermuda tax laws. Therefore any growth or income earned in your policy is not taxed. However, withholding tax may be deducted at source on income arising from investments held in some countries, which cannot be reclaimed by us. You may have a personal liability to tax depending on the tax laws in your country of residence and your own personal circumstances. Tax implications should be discussed with your specialist adviser.
As a client with Custodian Life, there are two main elements that will affect the charging structure:
- Contract period – this is the period you chose for your premiums. Additional premiums can be set up with different contract periods in comparison to the initial premium.
- Allocation rate – this is the rate at which your premium is applied to the policy. This could be below or equal to 100%. It is possible to set an allocation rate of your EIB policy so that the whole establishment fee relating to the premium is deducted on the policy start date. Alternatively, you could set an allocation rate up to 100% and pay the establishment fee over a set period of time, the chosen contract period.
Depending on your EIB policy setup, different charges will apply.
- Establishment fee – An establishment fee can be paid upfront or over a set period of time (the contract period), or in combination. If you chose an allocation rate higher than 92.25%, the establishment fee will be paid in part or zero upfront and in part or in whole over the contract period. The establishment fee you pay over the contract period will include an interest and will be amortized over the contract period. An early surrender fee may apply during the same period.
- Annual management charge –this is a charge that is taken throughout the lifetime of your policy as a percentage of the policy value exceeding your premium during the contract period and as a percentage of the policy value when contract period is due.
In addition to the establishment fee and the annual management charge there is also a flat policy fee. This is a fixed amount that may change in the future. It is taken from the cash account on the quarterly anniversary of the policy start date. The fee continues to be taken until the policy comes to an end.
The elements making your final charging structure will be detailed in your policy schedule. Your financial adviser can provide details before you apply for your policy. EIB additional fees
- Transaction charge- a transaction charge of USD 45 (or currency equivalent) will apply to each transaction in your EIB policy.
- Investment fees- the investment fees applied will depend on the investments to which your EIB policy is linked. Fees can include, but are not limited to, initial and annual management charges, performance fees and exit fees. Fees are determined by the investment manager. Where a discretionary manager has been appointed to your policy, our institutional discounts will not apply. You should ask your discretionary manager about expected investment fees.
- Custodian fees- these are charged to cover the costs of safekeeping records relating to linked investments. Custodian fees can vary in cost depending on the type of investments, however, to keep charges clear under EIB we charge a flat fee of USD 45 (or currency equivalent) per each purchase or sale of an investment. Where a discretionary manager has been appointed to your policy, our custodian fee will not apply. You should ask your discretionary manager about their custodian’s fees.
- Stockbroker fees- where a chosen linked investment requires, it may be necessary to buy or sell the investment through a stockbroker, any fees will be deducted from the EIB cash account. The current stockbroker fees are available from us on request. Where a discretionary manager has been appointed to your policy our stockbroker fees will not apply. You should ask your discretionary manager about their stockbroker’s fees.
- Advice fee- if you choose to appoint an investment adviser, their fees can be paid directly from the EIB cash account. An investment adviser fee up to 1.5% of the policy value, payable quarterly, can be requested. The amount available may be lower than this depending on other charges taken.
- Discretionary manager fees- if you choose to appoint a discretionary manager to manage the investments linked to your EIB policy their fees will be deducted at source. Discretionary managers may also have to pay custodian and stockbroker fees for some investments.
- Foreign exchange- where we are required to perform a foreign exchange (FX) transaction, this will be done at a rate determined by us, based on those commercially available in the market.
All of our Policyholders and Financial Advisers who wish are provided with a log in account to the Client Manager. Just to mention some of the benefits with the Client Manager:
- Accessible 24 hours a day, every day
- Available on your laptop, tablet and phone
- Will let you see all pending tasks on your policy
- Will let you see and download valuation statements
- Will let you access all of your uploaded documents
- Will let you see all transactions on your policy, and much more
We believe that technology and innovative solutions will facilitate your financial journey. We also believe in the importance of trust and human relations, which is why we are here to guide and support you when needed.