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HMRC internal manual

International Exchange of Information Manual

Financial Accounts: Cash Value Insurance Contracts: Examples

Financial Accounts: Cash Value Insurance Contracts: Examples

The type of UK insurance products that are most likely to be cash value insurance products are:

  • Investment bonds – life insurance policies in which the policyholder invests either a lump sum or makes regular payments which go into a variety of investment funds with the aim of delivering an investment return.


  • Capital redemption bonds – policies under which one or more fixed sums are paid to an insurer under a contract pursuant to which one or more specified amounts are paid out at a later time based on an actuarial computation.


  • Deferred annuities in the accumulation phase – a deferred annuity delays distribution of payments until some point in the future after the accumulation phase has passed. The accumulation phase begins when the contract is entered into and ends after a specified period of time during which premiums are payable. Pension annuities that fall within the excluded products list [see IEIM401720] are not reportable.


  • Maximum Investment Plans and savings back life assurance policies – regular premium life assurance policies generally carrying a relatively small amount of life cover. The premiums are pooled by the insurer to enable investment through a fund manager with a view to generating a return on the investment.


  • Insurance “wrapper” products – insurance contracts, such as private placement life insurance, where the assets are held in an account maintained by a Financial Institution and managed in accordance with a personalised investment strategy or under the control or influence of the policyholder, owner or beneficiary of the contract.


Cash Value Insurance Contracts do not include general insurance policies or term life insurance contracts including:

  • Indemnity insurance contracts between insurance companies.
  • Policies indemnifying against economic loss arising from specified circumstances, for example personal injury, theft, etc.
  • Micro insurance contracts that do not have a cash value.