Hansard International Capital Investment Bond: A Review

Adam Fayed
20 min readApr 29, 2024

Article originally posted here from adamfayed.com.

Hansard Global provides a comprehensive suite of investing and savings options, tailored to the specific requirements of its international clientele.

Their industry-leading web services, which have been available to customers and advisors since 1999, make it easy to track and manage customers’ policies.

In order to accomplish your goals in the future, you will need access to adequate financial resources at the appropriate times. The Hansard International Capital Investment Bond is a permanent, permanent life insurance policy.

A capital redemption contract with a 99-year fixed term, the Hansard International Capital Investment Bond is an offshore investment option.

Unless it is cashed in earlier, it lasts until the conclusion of the term. The bond’s face value is guaranteed to be at least double the premium you paid at the conclusion of the period (less any withdrawals or surrenders).

The Hansard International Capital Investment Bond may be issued as either a single policy or a “cluster of polices,” which consists of multiple individual policies.

There is a “surrender charge” or “early withdrawal charge” if the insurance is cashed out before the initial charging term has ended (determined by the commission and charging structure agreed upon at the time the policy was activated).

You should carefully compare the benefits of a Hansard International Capital Investment Bond against its limited adaptability, inaccessibility, and charges, which are not often made clear.

The purported tax benefits of the Hansard International Capital Investment Bond may be negated by the fees involved, making it a more expensive choice than a pure platform custodian plan.

High recurring costs must be compensated for by accepting a commission rebate. There is a lack of investment options such as discount mutual funds, direct stocks, and trackers.

In this article, we will go into detail about the Hansard International Capital Investment Bond to help you decide if this product is right for you and your needs.

If you have been proposed this option and want a second opinion, you can email me (advice@adamfayed.com) or contact me here.

We can sometimes introduce alternatives which might be better for your situation.

Who are Hansard Global?

Hansard Global, which has been around since 1970, was originally called the Liberty Life Assurance Corporation and was founded by American doctor Leonard Polonsky. The company has a long and storied history.

Hansard is a specialist in long-term savings, with the primary objective of enabling other businesses to provide savings and investment products wrapped in secure insurance policies to its customers, which are individual and corporate investors.

Hansard Global’s support staff is equipped to answer any issues its customers may have and can do so in a variety of local languages.

Hansard International and Hansard Worldwide are two of the company’s divisions that offer various goods and services.

The two worldwide life companies provide savings and investment options for Hansard Global’s policyholders and their advisors around the world.

The Labuan Financial Services Authority regulates the goods that Hansard International Limited (Far East) sells through its network of advisors in East and Southeast Asia (LFSA).

Insurance in the Bahamas is governed by the Insurance Commission and Hansard Worldwide Limited is subject to their oversight (ICB). For major markets in South America, the Middle East, Africa, and Asia, Hansard Worldwide has a home base in London.

The ICB and the LFSA are both members of the International Association of Insurance Supervisors, an organization consisting of insurance supervisors and regulators from over 200 jurisdictions that monitors 97% of the world’s insurance premiums.

Hansard Global went public in 2006 on the London Stock Exchange following a $357 million IPO that netted its founder £99 million.

Hansard Global: What do they offer?

Life insurance policies, pensions, annuities, and retirement plans are just some of the financial options provided by Hansard Global.

Unit linked insurance products are a mainstay of the company’s offerings; these are investment policies that pair your savings with protection against things like death, critical sickness, and disability.

It’s crucial to do your homework before putting your money into these goods because of how complicated they can be.

A unit linked insurance plan is a flexible investment vehicle that may be used to gain insurance coverage as well as investment exposure to bonds or stocks.

Regular premium payments are required of policyholders. The insurance premiums are split between the cost of actual coverage and investment in the market through stocks, bonds, or a combination of the two.

They come in a wide variety of forms, but they all share the quality of being housed within a vehicle that also stores other investments. Pension plans and individual savings accounts are two examples of such vehicles.

Unit-linked insurance policies are common among expat savings schemes. Inside these vehicles, you’ll find unit-linked policies as well as unit-linked funds, which are related to but not the same as unit-linked policies.

Unlike unit-linked policies, which typically utilize preexisting asset managers under the group’s umbrella or parent organization, unit-linked funds are independent investment funds with their own management teams.

Life insurance, wealth building, retirement income generation, and education finance for one’s offspring are just few of the many possible uses for a unit linked insurance plan.

Investors often establish these accounts for the benefit of their descendants. After the policyholder’s death, the beneficiaries would receive the policy’s death benefit from the insurer.

Unit-linked insurance plans’ investment options are structured very similarly to mutual funds in that they pool investors’ money together.

So, a unit linked insurance plan’s assets are managed with the end purpose in mind. Investors have the option of purchasing shares in a single strategy or a plethora of market-linked plans and funds.

Unit linked insurance policies typically call for an up-front, large payment from policyholders. After that, they will need to pay a premium once a year, twice a year, or every month.

We have already weighed the pros and cons of these programs. While premium payment obligations may change from one product to the next, they are always distributed fairly across a range of investments.

Policyholders who pay their premiums on a consistent basis can build their initial investment more quickly than they would if they had to wait for returns to accumulate. In addition, “filling up,” or adding substantial lump sums to an existing balance, is an option provided by many plans.

Protection insurance policies, such as critical sickness, death in service, and income protection, may also be included in such plans, with the amount of the payout varying with the number of years of premium payments.

If you or a loved one are ever diagnosed with a “critical disease,” such as cancer or a heart attack, your critical illness insurance will pay a lump sum benefit. If you pass away while on the job, your beneficiaries will get a death benefit from your company’s “death in service” insurance (or before retirement).

If an employee is unable to work due to sickness or injury and is still employed by their company, income protection insurance will provide a monthly benefit.

What are the benefits of these products?

Investment and life insurance are brought together in unit linked insurance policies. You can opt to have your policy in effect for a set amount of time (let’s say 10 years) or until your death, as it comes in both term and endowment policies.

If you’re unfamiliar with the term “unit linked,” it simply means that you will receive one unit per the terms and conditions outlined in your policy.

With this plan, you can hedge your money against inflation and earn more money than you would with a savings account or a systematic investment plan (SIP) in a mutual fund.

Apart from traditional life insurance, unit-linked policies offer the following advantages:

Tax advantages. Income from unit linked insurance policies is often viewed as investment income and subject to taxation. The premiums you pay on your insurance coverage may be tax deductible in some jurisdictions.

To determine how much tax you will have to pay on your offshore savings plan, you should consult with a qualified tax attorney and your financial advisor.

If you wish to diversify your portfolio with other investments like equities or mutual funds, you typically do not have to give up your unit-linked insurance plan or annuity just yet.

With many of these plan providers, you can switch between funds as often as you choose over the policy’s duration. You can get more for your money with a top-up.

After the lock-in period, you can make partial withdrawals of your assets at no cost to fulfill your cash flow needs.

Unlike with mutual funds, where you will be hit with an early redemption fee if you sell before a certain period has elapsed, switching from one fund manager’s portfolio into another doesn’t cost you anything.

More potential for growth than regular savings accounts. Unit-linked policies’ potential for growth is tied to the long-term success of the individual funds.

Equity and bond funds both have the potential to generate higher returns. This can help you reach your long-term goals, including as retirement, home ownership, and providing a better education for your children.

Safeguards and motivation to practice sound fiscal behavior. The peace of mind that comes with a life insurance policy is available through unit linked insurance policies, protecting your loved ones financially in the case of your untimely demise.

Most insurance companies will put away between 70 and 80 percent of their capital in equity-based funds, while keeping the remaining 20 to 30 percent in fixed income instruments like bonds.

But, with these plans, you get to decide for yourself where your premiums are invested.

Unit linked insurance plans emphasize the importance of regular, disciplined saving as a cornerstone of sound long-term financial planning. By keeping up with your premium payments, you may help your loved ones build financial security for the future.

What are the drawbacks of these products?

Long-term passive investment strategies like unit-linked insurance and expat savings plans like Hansard International Capital Investment Bond have their drawbacks.

Having to pay taxes on the earnings from unit linked insurance policies is a major drawback in countries where such taxes are levied. Depending on how much interest and income your assets produce and your tax status, this could have a significant impact on your returns.

You should also consider the annual cost of purchasing and maintaining this sort of coverage, which can range from 1% to 3% of your entire investment amount based on factors like age (as we age, our premiums often increase) and any preexisting health concerns or family history, among others.

There is always the risk that an investment will lose value, and the stock market is no exception.

Hence, while many investors do well with unit linked insurance plans over the long term, others do poorly since they chose funds that did not perform as well.

Because they tie up your money for at least five years and often much longer, unit linked insurance plans do not qualify as liquid assets because you cannot access your money before they mature without paying penalties or giving up a portion of your interest.

Getting into a unit linked insurance plan is a big commitment because many of these policies on the market today include early withdrawal conditions that limit your financial flexibility.

While deciding on an expat savings plan or unit linked insurance plan, keep in mind that many of them charge substantial early withdrawal penalties on top of their usual fees.

Sales and administrative expenses are typically included in the first estimate of program expenditures. The remaining cost is paid back to the customer in the form of end-of-plan bonuses.

Let’s take the simplest possible scenario, where someone purchases a 10-year savings plan. The annual cost of the plans is normally between 1% and 2% if the premium is spread out over 120 months.

That makes logical sense. The true cost if the client stops paying midway through the contract is closer to 4% yearly because end-of-contract bonuses are often not reimbursed to clients.

You may be able to choose a more cost-effective solution or negotiate a lower pricing structure for your account, depending on the specifics and constraints of your situation.

It would be great if you are able to completely commit to an international retirement savings plan. You are one of the chosen few who will benefit from these schemes.

Yet, just 3%-4% of the population actually commits to these policies for the standard 20- to 30-year durations. However, this does not mean the 10- or 15-year plans cannot still yield respectable returns.

Many consumers stop making payments to their plans because the starting fees are too high. Many customers stop paying because they don’t see the payout coming, which is the substantial incentive at the end of their contract.

Throughout the contribution time, many people find that their needs have changed, leading them to make the decision to withdraw funds early.

The fee structure of some unit-linked insurance plans is problematic as well, since it is not universally implemented.

As a rule, we recommend staying away from such traditional plans unless you are certain you can reliably make the required monthly contributions.

There are more advantageous ways to cut costs, and more alternatives for customization are available from modern service providers.

When members stop paying contributions, most unit-linked insurance plans lose money, break even, or earn a maximum of 4% yearly.

Even if the annual cost of the account would be more than 4%, the client’s account might grow by 4% due to non-contribution if the markets are performing at 8%-9% if the suitable funds are picked.

The “indemnity period” in these pension schemes is typically 18 months. If you stop making payments during the first 18 months, you will have to give up your entire investment.

It is not accurate to say that you’d lose all you invested if you stopped making payments after 18 months, but your bottom line will suffer as a result of the high costs.

From the outset, it’s clear that these policies aren’t always flexible enough to accommodate an expat’s needs.

If you have only put away a little portion of your earnings, this is especially true. A non-citizen with a taxable income of $10,000 per month should have no trouble paying a $1,000 monthly fee. A foreigner with a monthly income of $3,000 might struggle to pay the charge.

As the introductory time ends, you have the option of either continuing to make payments or switching to a different plan, both of which come with their own set of drawbacks. The likelihood of seeing significant gains or losses remains the same, even if your premium is lowered.

This is due to the fact that subsequent charges are based on the initial fee. If your monthly premium was $2,000 before and is now $300, the percentage-based payment scheme will still be based on the original $2,000 premium.

However, you might want to keep going if you’ve been investing for five, ten, or fifteen years.

What else should I know about Hansard products?

Hansard International offers a variety of products that can be tailored to fit the specific demands of each customer.

You can choose from over 140 distinct unit fund ties across many asset classes, regions, currencies, and investment aims offered by Hansard International.

Global industry heavyweights including BlackRock, Fidelity, Nomura, HSBC, and others administer these unit fund relationships.

Alternatively, Hansard’s single contribution portfolio products can be paired with the hundreds of equities, bonds, collective investment schemes, and other asset classes that Hansard International provides access to.

You can simply diversify your portfolio thanks to the wide range of investment options available.

The Isle of Man is responsible for authorizing and regulating Hansard International. Neither the appreciation of its assets nor the income generated by them are subject to municipal taxation. As a result, all customer money is growing exempt from taxes.

Withdrawals from a Hansard International contract are not subject to withholding on the Isle of Man.

The Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 apply to Hansard International contracts. In the highly improbable event that Hansard International is unable to meet its liabilities, contract holders would be entitled to obtain reimbursement of up to 90% of any liability of the insurer under the contract.

There is no maximum payout and coverage extends worldwide to contract holders.

The Isle of Man provides a business climate that protects the confidentiality of client communications and transactions. Hansard International will not share customer information with any outside parties, including government agencies, unless forced to do so by law.

The Isle of Man has had uninterrupted Parliamentary Government for over a thousand years, contributing to the island’s remarkable political and economic stability.

With its strong adherence to international standards, its well-known investor protection system, and its independent financial services ombudsman, the Isle of Man has earned its reputation as a top international financial center.

The Isle of Man’s economy and finances have been given a “AA+” grade by Standard & Poor’s.

What is Hansard International Capital Investment Bond?

There are a lot of offshore investment bonds like the Hansard International Capital Investment Bond.

The goal of the Hansard International Capital Investment Bond is to help you save a significant sum of money over the course of several years, starting with at least $20,000 in the first three years, without requiring you to make a regular, predetermined commitment.

It can be owned solely or jointly, is written on a capital redemption basis (meaning there are no lives assured, so the investment does not terminate on death), and is suitable for Estate Planning purposes.

The Hansard International Capital Investment Bond plan is a type of unit-linked instrument that can accept either one-time or recurring contributions.

It’s meant for saving up a large sum of money over the course of several years, starting with at least $20,000 in the first three years, without having to commit to a regular, defined payment. It can be owned solely or jointly, and is written on a capital redemption basis.

It has the following features:

  • The Hansard International Capital Investment Bond can be issued in any of the following currencies: USD, GBP, HKD, JPY, or EUR. The plan’s currency will be used to pay out benefits.
  • At any moment during the term of the contract, the holder may elect to have the contract denominated in a different currency, at the holder’s expense.
  • Starting with at least $20,000 per year for the first three years.
  • If not fully relinquished before its 99-year period ends, it will mature at the end of that time. The portfolio’s value at the conclusion of the set term is equal to the face amount of the Hansard Capital Investment Bond.
  • Bondholders of Hansard Capital Investment may make lump sum payments at any time, with a minimum commitment of $2,000 USD. A minimum of $600 USD per month or $1,800 USD per quarter can be contributed on a regular basis.
  • Failure to pay the minimum required contribution by the third anniversary of the start of the contract will result in the cancellation of units and an extra charge of GBP 420.
  • Access to foreign equities, bonds, and collectives is accessible, along with more than 170 other overseas funds.
  • There are additional charges for opening and maintaining a QROPS or SIPP that includes a Hansard Capital Investment Bond.
  • The standard sum assured is 101% of the value of the initial and accumulator units, payable upon the death of the life assured (or the first life assured to die, in the case of a joint-lives first-death contract, or the second-life assured to die, in the case of a joint-lives second-death contract) prior to the agreed maturity date. The policy’s value will be derived from the current unit bid price.

Candidates must be at least 18 years old as of the opening date. Applicants from the United States of America, U.S. Persons, and the majority of European Union Member States are currently not being accepted.

The contract can be executed in a variety of global currencies. At any moment during the term of the contract, the holder may elect to have the contract denominated in a different currency, at the holder’s expense.

If not fully surrendered before the conclusion of the 99-year period, the contract will automatically expire at that time.

The surrender value of the contract as of the maturity date will be the maturity benefit that is paid out to the contract holders (or their designated beneficiaries) at the end of the period.

At any moment, you can put in a single payment of at least $2,000 USD. A minimum of $600 USD per month or $1,800 USD per quarter can be contributed on a regular basis.

Throughout the first three years of the contract’s start, payments must be made that add up to the minimum stipulated contribution of $20,000 USD.

Failure to pay the minimum required contribution by the third anniversary of the start of the contract will result in the cancellation of units and an extra charge of GBP 420.

The minimum contribution amount is determined on the effective date of the contract by translating the USD cap to the chosen contract currency. Contributions can be made in any freely convertible currency.

Accumulator units will be purchased at the current bid price using all of the donations received.

Hansard International’s Series 1 unit fund range is available for allocation of units. A maximum of twenty separate unit funds may be selected at the time the contract is opened. After that point, there is no upper limit.

The term “switch transaction” refers to the process of exchanging units in one unit fund for units in another unit fund.

Unit holders have the flexibility to move funds at any moment on a “bid-to-bid” basis.

If you wish to switch unit funds within the contract year, you will be charged a fee of GBP 45 each unit fund switch, with a minimum charge of GBP 90 per switch.

After investing $20,000 in a Capital Investment Bond, you’ll be eligible for up to five annual free switch transactions.

The greater of the number of unit funds being switched out of or into will be used to determine the number of switches for this fee calculation.

At present, there are no fees associated with using the online fund switching feature to effect a trade. At no cost, you can reinvest your future contributions in a different group of unit funds at any time.


Provided contributions totaling at least USD 20,000 have been collected, withdrawals may be made on a periodic or as-needed basis to provide an income, subject to usual withdrawal procedures and charges.

Depending on the total amount of contributions and the number of payments received, the withdrawal fee (currently GBP 29) may be reduced or eliminated entirely.

At any point, you may request a withdrawal of your investment in exchange for the value of your units less any remaining management charges for the year and, if applicable, the discontinuance charge set forth below. The bid prices per unit are used to determine the value.

At any time, you can take out a minimum of $200 USD. If applicable, the discontinuance price will be levied in addition to any unpaid yearly management charges, service charges, or establishment fees that are owed upon full surrender.

By withdrawing or fully surrendering units related to contributions that have been allotted for less than seven years, a discontinuation charge will be applied. For allocations that have been made for less than a year, this fee is equal to 7% of the value of the units, decreasing by 1% for each full year of allocation.

All of the units correspond to the single donation made if any.

To determine the number of units associated with each subsequent contribution, a factor is added to the total number of units (after the contribution has been applied to the contract).

he factor is calculated as A / (the total fund value minus the amount of the contribution made) where A is the amount of the contribution and B is the value of the fund immediately after the contribution has been made.

If you sell units related to contributions that have been allocated for five to seven years, you won’t have to pay the discontinuance fee as long as your annual withdrawals don’t exceed 10% of the total contributions.

This penalty is currently set at GBP 420 and is levied by the cancellation of units if the contract is fully relinquished during the first three years without the minimum stipulated contribution being received.

If a withdrawal is made during that time frame and the minimum total contribution has not been collected, the contract will be fully surrendered if the value of the units still allocated to the contract after the withdrawal is less than the additional fee.

Investment charges

All monetary obligations are stated in Great British Pounds, and may be adjusted annually in July to account for inflation as set forth in the Contract Terms and Conditions.

Because the contract and the underlying unit funds may be denominated in various currencies, currency conversions may be necessary for deducting fees.

Unit investments typically have fees added by the fund’s external manager. These costs are already factored into the unit price, and they are subject to change at any time with no advance warning.

There will be a fee assessed by the bank for any contract payments that are withdrawn or surrendered. This fee varies in size based on the type of currency used and the location of the recipient’s bank account.

A transaction fee may also be assessed by the contract holder’s own bank. Contract holders will receive a statement detailing their unit allocation at the conclusion of each contract year or, if they choose, they can obtain this information from their independent financial advisor.

If you need any more statements, they may be had for GBP 32 each.

Applying for an online Account through Hansard International’s secure internet service allows the contract holder to examine crucial information at no extra cost, allowing for more regular monitoring of the contract’s progress.

Important notes

The value of this contract is determined by how well the unit funds selected by the contract holder perform. Due to its dependence on the unit price, fluctuations might result in financial loss, particularly in the near term. Currency exchange rate swings can have both good and negative effects.

Moreover, there is no assurance that all orders to sell or buy unit funds will be executed instantly upon receipt.

The following are not things for which Hansard International claims responsibility:

  • any existing or future tax or other legislation in any nation that might have an impact on the contract or any benefit that might be payable under it. Candidates should research the laws in their home nation on their own;
  • any additional data about this product profile supplied by a third party;
  • and since Hansard International does not offer investing advice, the applicant’s product selection may or may not be appropriate.

Only independent financial advisors, acting as contract holders’ agents, will be able to purchase the product, with the understanding that the advisor will act as the holder’s legal representative in all matters pertaining to the contract.

The contract between the contract holder and the provider is spelled out in detail in the applicable product terms.

Contract holders who move to the United States may find that Hansard International is unable to accept additional contributions or instructions to change their unit fund allocation until after they have left the country.

Hansard International reserves the right to delay the valuation of a unit in a unit fund or to value the fund at zero in the event of extraordinary circumstances or events beyond the company’s control.

The Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991 apply to this agreement. Hansard’s policy is to promptly address and resolve any concerns raised by contract holders. The contract holder has the option of referring unresolved complaints to the Isle of Man Financial Services Ombudsman.

Is the Hansard International Capital Investment Bond a good investment?

Holding an existing Hansard Capital Investment Bond comes with two key drawbacks.

For starters, while having a solid IT infrastructure, Hansard does not have a stellar reputation when it comes to working with legitimate middlemen.

Well-hidden, high product charges used to pay this adviser’s commission make it likely that the outcome you receive may differ significantly from what you expect if you receive advice through one of these distributors.

Second, this category of goods is rigid and closed to new customers. Senior foreign professionals now have access to superior investment options, lower costs, and greater product flexibility than ever before.

We have come to the conclusion that this product has become obsolete, which is likely the reason it is no longer being promoted.

You should seek professional counsel if you already hold a Capital Investment Bond from Hansard valued £500,000 or more to make sure you are on pace to achieve and maintain the lifestyle you want.

If the insurance policies offered by Hansard Global suit your needs, you may be able to earn respectable returns on your investment over the long term. If you decide to put money into them, you should discuss the best course of action with a financial planner.

Hansard Global is an established financial services firm with a stellar track record. Those with a long-term horizon, modest investing goals, and an aversion to market volatility or inflation may find attractive solutions from Hansard Global.

Yet, for individuals looking for a better return on investment, there are alternatives to Hansard products.