TEP’s Investment opportunities

• Planning for specific occasions (i.e. 18th/21st Birthday, Weddings, Anniversaries etc.)
• Ideal as a lower risk investment for a balanced portfolio.
• Useful for investors with capital and some spare income.
• Offers a balance between No Risk (bank deposits) and Higher Risk (Direct Market) products with Guaranteed Minimum return at outset.
• Excellent for School Fees or University Fees Planning.
• Planning for specific events such as weddings, anniversary's or a special holiday.
• Retirement Planning – TEP’s qualify to be held within a SSAS or SIPP and provide useful alternatives to equity based investments for Directors/Partners approaching Normal Retirement Age.
• Retirement Planning – They can be used outside of traditional Pension Plans to provide an income stream by purchasing a portfolio of policies maturing in consecutive years. This would then provide additional income whilst avoiding Inland Revenue pension contribution limits together with the 25% cap on tax free cash.
• Corporate investment – TEP’s are an excellent way of sheltering retained profits within a low to medium risk environment with any growth avoiding additional direct taxation until the year of maturity. With careful planning policies could be purchased to mature in years where a large capital spend was planned i.e. company expansion, purchase of plant or machinery, pension contributions etc. thus minimising the amount of tax payable.
• As a gift with possible tax advantages.
• To repay loans or mortgages.