The Income Bond provides you with the ability to invest a lump sum, whilst having the option to take an income if required. This type of plan is designed for the medium to long-term, with the added flexibility of taking an income straight away, or leaving the money invested to build up bonuses until you are ready to take an income. You can then choose to take an income of between 1% and 5% either monthly, quarterly, half-yearly or annually - with no immediate tax implications. The minimum investment for taking a withdrawal of under 2% is £30,000 and the minimum investment for taking a monthly income is £10,000.

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The bond is a single premium life policy designed for a minimum investment period of five years, allowing you to take a regular income from your investment - perhaps during your retirement.

There is also the potential for capital growth as your lump sum (the initial investment) is invested in a with-profits fund from which, depending on investment performance, aims to pay bonuses each year. On encashment and subject to the conditions outlined below, you will receive the capital balance (the initial investment less income and partial withdrawals) plus bonuses added during the life of the policy.

For additional peace of mind the bond also has a capital guarantee after five years.

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Anyone over the age of 18 who is looking to invest a lump sum and requires the option to take an income. The plan can be opened in joint names.

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A bond with guarantees and the option to take an income with the added peace of mind that your money could be covered by the Financial Services Compensation Scheme.