Assurance Vie

[Ann]

I am trying to find information on a Assurance Vie investment.  We have been told it would be ideal for us as it would generate an income and that we would also be contributing towards social charges however, I have just read an article where someone has cashed theirs in as they were losing money.

Any information would be appreciated.

[LesLauriers]

Assurance Vie is a wrapper, much the same as a PEP or an ISA is a wrapper for the investments of your choice. There is a small amount of life cover included with the policy (normally about £500), however it is really a vehicle for legally avoiding tax on your longer term investments and reducing inheritance tax.

You can place a very wide range of investments inside the wrapper so your returns will vary according to the level of risk you wish to expose yourself to, equities, bonds, cash etc. Had you taken out an equities based plan 12/18 months ago, you could have achieved excellent growth levels, however the value of your investments can go down as well as up!

The safer the investment the lower the return is usually the rule, ask your adviser about "Funds en Euros" as these may suit you.

[Ann]

Thank you for the information I did not realise it was along the lines of PEP's and ISA's.  Will certainly look at other options.