Bonus Plan

Tax-exempt regular savings plan over and above your client’s annual ISA allowance

Key features of the Shepherds Friendly Bonus Plan

  • Investments from as little as £10 a month
  • Minimum 10 years investment – more potential for growth through our annual bonuses, and greater protection from adverse fund performance
  • Further tax advantages over and above their annual ISA allowance
  • Life Insurance included – if your client dies within the term of their plan, their family will receive a tax-free lump sum, depending on the amount invested
  • Growth occurs through a share of the profits of the Shepherds Friendly With-Profits fund, free from income tax and capital gains tax – giving great potential for long-term growth

Further information

Our Bonus Plan is a tax-exempt savings plan that allows your clients to save tax-efficiently for their long-term future, regardless of whether they’ve used their annual ISA allowance or not. The sum invested will be free from income tax and capital gains tax, and when the plan matures the sum they receive will be tax-free. The plan lasts for a minimum of 10 years, with the aim of achieving an increase in the value of the sum invested through adding annual bonuses. A further benefit is should your client die during their policy term, their family will receive a guaranteed tax-free lump sum

Important things to consider

  • Your client may get back less than they have paid in
  • Early encashment penalties, which would reduce the amount of the final payout
  • Bonus rates vary from year-to- year depending on the performance of our investments and in some years we may not pay out any at all