Recently a new generation of life assurance product has emerged which oﬀers individual policyholders the following beneﬁts:
Selection of any protection percentage level and any term
A personalised match based on risk appetite
A tailored asset mix based on a pre-qualiﬁed menu of fund managers
A guaranteed investment return with flexibility for the investor
Creates an important advisory role for the client advisor to introduce, explain, oversee and review
In essence iCPPi oﬀers protection against a chosen percentage of an individual’s investment (say 80%) so that in falling markets, the strategy allocates more towards the safer assets, while in improving markets, the strategy allocates more to the risky assets. By taking this approach the iCPPI product undertakes to best manage this trade-oﬀ between returns from risky assets and the cost of protecting the individual policyholders investment.
In addition, there is typically a good choice of best-of-breed investment managers’ funds and bond providers for the investor and their advisor to choose from.