Our AIM Inheritance Preservation Service Insurance Policy

Posted on September 2, 2011

About our Insurance Policy

Stellar has sought to offset the risk of a potential decrease in the value of the (AIM Inheritance Preservation Service) portfolio by offering an insurance policy which can be taken our alongside the investment which will pay out on any fall in the value of the investment at the date of death.

There is no obligation to take out the policy which can be cancelled at any time and will cover any potential decrease in the value of the fund due to fees and charges.

You will need to ensure that the insurance policy is written into trust to ensure that in the event of a claim. Therefore any payment will be outside of the estate and not liable to Inheritance Tax.

Who Can Take Out the Insurance Policy?

If the investor is under 80 years old and can satisfy four conditions they will automatically qualify for the insurance at the standard premium. If they do not automatically qualify, they will have to complete a short health questionnaire before a decision can be made by the underwriters.

Costs Involved

An annual fee of 2.05% of the initial investment amount applies to this policy. This may be higher depending on the age and health of the investor. It is intended that annual premium will be paid from dividends received in the portfolio.

Insurance Provider

The life insurance policy is provided by a UK registered insurance company whose major shareholder is MedGulf. It has net assets of $199 million and underwrites 25% of the policy. The remaining 75% is underwritten by GenRE, a Berkshire Hathaway company.

The investor will have sole ownership of the portfolio managed by Hargreave Hale and it is therefore completely segregated from the business of both Stellar Asset Management and Hargreave Hale. This is to protect the investor in the event that Hargreave Hale or Stellar should fail in any way.