It's a way of putting your money into a fund or funds over the long term. The bond is issued by a life insurance company located outside the UK. An offshore life insurance bond can be a tax efficient way to invest.

As tax planning depends on your personal circumstances you should check your tax situation with your Financial Adviser.

Investment bonds may have some advantages over other types of investments, particularly when it comes to switching and accessing your money. Because your bond invests in a range of funds, you may find you'd like to switch some of your money from one fund into one that has a different level of risk. It should be noted that an investment bond is designed to be a medium to long-term investment and should not be viewed as a short-term investment. Cashing in all of the bond or entire individual policies (segment) in the first five years from the start date may be subject to an early cash-in charge.

If you were to invest directly in stocks and shares, such switching could trigger a tax charge. In a bond you can switch funds without incurring a tax charge

With an investment bond you can choose to withdraw some of the original money you invested, without actually fully cashing in any life policies within the bond. If you are a UK taxpayer and you keep to a 5% withdrawal limit each year for a maximum of twenty years, you won't incur any immediate liability to tax at the time of these withdrawals.

These tax interpretations are based on our current understanding of the tax rules. As tax rules do change you should check your personal tax situation with your Financial Adviser. There is no charge for regular withdrawals. If you withdraw amounts of more than the growth of your bond after charges, they will reduce its value.

Your bond is invested in a fund or funds of your choice, which in turn invest in a range of assets. Each fund carries a different level of risk and potential for performance, depending on what type of assets it invests in.

Because of the risk, the value of your investment may go down as well as up and you may not get back the amount invested.

For many investors who live in the UK, an offshore investment can be a tax efficient way to invest. Offshore companies use legitimate tax advantages in locations outside the UK, such as Dublin, to help you control your tax.

Income tax on offshore investment gains is only payable when a benefit is received, for example when you cash in all or part of your bond. You can plan and control the timing of any liability to tax. By choosing to pay income tax at a time when your tax liability is low, you may pay tax at a lower rate than you might otherwise have done. This means you'll enjoy more of your money that has been growing in a tax efficient environment.

Investment growth in offshore life insurance funds can accumulate in a tax efficient environment. The only tax on income and capital gains that your offshore life assurance funds may suffer is some unrecoverable withholding tax that most countries deduct from dividend income and interest payments. Withholding taxes vary from country to country and according to the type of investment.

These tax interpretations are based on our current understanding of the tax rules. As tax rules can change you should check your personal tax situation with your Financial Adviser.

  Trustworthy

• An offshore investment from a brand name you know and can trust.

Transparent

• Clear, transparent charges.

Experienced

• As part of the Aviva group, which manages over GBP332 billion on behalf of 35 million customers worldwide (as at August 2006).
• Access to Norwich Union's own fund management team and the expertise provided by other leading fund management companies.

The size and strength of a company can decrease as well as increase over time.