What types of life insurance can be included in an ISA?
A. An ISA can include life insurance policies that are • ‘unit linked’ or ‘investment linked’ policies. This is like a ‘pooled’ investment such as a unit trust • ‘with profits’ policies. This is a more traditional type of life insurance policy where you participate in the profits the insurer makes from investing your premiums through ‘bonuses’ which the insurer declares, usually once a year. Only certain life insurance policies on the saver’s own life, which are specially designed for ISAs can be included in the ISA. These may be the ISA manager’s own policies, or the ISA manager may offer a range of policies from different insurers. ISA policies must meet a number of conditions to qualify. Managers offering life insurance will be able to give you details of the policies.
