IPTM7770 - Personal portfolio bonds (PPB): permitted property: life policies, life annuity contracts and capital redemption policies
Selection of other policies and contracts
Benefits under a policy may also be determined by reference to another life insurance policy, capital redemption policy or life annuity contract that the policyholder has selected. In such cases, the policy would not be a PPB provided that the policy or contract selected is:
- within the scope of the chargeable event legislation, and
- not itself a PPB.
Selection of internal funds of another insurer
A policyholder taking out a policy with one insurer may be entitled to select the internal funds of another insurer to determine the value of that policy. For regulatory reasons, it may be that the only way in which the benefits of a policy issued by one insurer can be linked to the value of the internal funds of another insurer is by investing in a unit-linked policy issued by the latter insurer.
An arrangement of this kind would not make the policy a PPB unless any underlying policy is a PPB.