Who Are:
Utmost?
Utmost Worldwide, a subsidiary of the Utmost Group of Companies headquartered in Guernsey, specializes in providing life-assurance based wealth management and employee benefit solutions worldwide. Their core business lines include Utmost Wealth Solutions, Utmost Corporate Solutions, and Utmost Life and Pensions, managing assets worth over £40 billion and serving more than 600,000 clients globally. Now, let's delve into the details of the Utmost Focus Plan.
***Some of these products may have commissions built directly into them. If you've been advised to consider an Utmost investment policy reach out to us to explore if we can establish the policy at a lower cost.
Kevin's Review:
Utmost is one of the largest providers of international insurance wrapped investment accounts in the market, having acquired over 15 business since 2013 including Scottish Mutual International, Aviva International, Axa IoM & Life, Generali and Quilter the depth of their product offering is extensive.
For an international (expat) investor that needs a comprehensive estate planning vehicle, rather than just a basic investment account, Utmost International is a good place to start.
Offering products designed specifically for certain nationalities and jurisdictions (UK, France, Portugal, Spain, Sweden, Middle East, etc.) Utmost caters to high-net-worth investors who take their wealth planning seriously. These policies can have huge tax benefits, but also complications if not used properly so it is especially important you consult a qualified financial adviser before committing to a policy.
These are long-term wealth planning vehicles as much as they are investment accounts and should be taken out only when appropriate to do so and with the proper time horizon in-mind.
Regular Savings Plan:
Vision
The Vision Savings Plan, a whole-of-life life assurance contract offered by Utmost International (formerly Generali Worldwide), involves regular premiums and a diverse range of investment funds. However, it has faced criticism for potential misrepresentation due to its limited flexibility and complex charging structures. Many policyholders may not be aware that early full encashment could result in the loss of most, if not all, premiums paid in the first 18 to 24 months due to surrender charges.
Utmost International's Vision Savings Plan charges vary based on the plan type and are influenced by the commissions or earnings of the third-party salesperson or adviser. The charges include:
-
Initial Period Charge: Determined by the premium payment term, with additional charges incurred at the start and throughout the term, potentially rendering initial units worthless upon early policy cancellation.
-
Premium Payment Term of 5 Years or More:
-
Up to Year 5: 2.75% per annum of total regular premiums.
-
After Year 5: 2% per annum of total regular premiums.
-
-
Premium Payment Term of 10 Years or More:
-
Up to Year 10: 2% per annum of total regular premiums.
-
After Year 10: 0.3% per annum of total regular premiums.
-
-
Plan Fee: £3 per month or currency equivalent.
-
Establishment Charges: Applicable only to single premiums, levied at 1.5%.
-
Investment Administration Charge: 1.5% per annum deducted annually in arrears from accumulation units.
-
Charges Within the Underlying Fund:
-
Internal Funds Bid/Offer Spread: 0% to 1%
-
External Funds Bid/Offer Spread: 0% to 2%
-
Internal Funds AMC: 0%
-
External Funds AMC: 0.5% to 3%
-
-
Early Encashment Warning: Full encashment incurs penalties through surrender charges linked to the policy term, resulting in the forfeiture of all premiums if surrendered during the initial period. For a 25-year plan, this period is 23 months.
It's crucial to note that the Vision Plan is a long-term savings plan, and early cancellation may lead to a substantial loss of saved funds. Prospective investors should thoroughly understand these charges and consider the plan's long-term nature before making a decision.
Investment Bond:
Portfolio Bond
Utmost International Portfolio Bonds are investment products offered by Utmost International, tailored for those seeking a flexible, tax-efficient way to diversify their investments across a broad spectrum of assets, including equities, fixed income securities, and alternative investments.
One of the standout features of these portfolio bonds is the ability to consolidate a wide range of investment opportunities within a single account. This can be particularly beneficial for investors who may lack the time or expertise to manage a varied and complex portfolio independently.
A significant advantage of Utmost International Portfolio Bonds lies in their tax efficiency. Structured as an insurance policy, these bonds are subject to different tax regulations compared to standard investment accounts. For instance, investors may have the option to defer taxes on any gains until they decide to withdraw funds from the bond.
However, it is crucial to recognize that all financial products, including Utmost International Portfolio Bonds, come with inherent risks. Investors should carefully assess their investment goals, risk tolerance, and overall financial situation before making any decisions.