Life Insurance Guide | Insurance Help Product Information | Property Bonds

Property bonds are unit-linked bonds invested in the office’s property fund. They have a history of long-term capital growth but the outcome depends on the value of commercial and industrial property at the time the money is required.

They are not as liquid as other unit-linked bonds, because it is not as easy to sell the underlying investments (eg office blocks or shopping developments) as it is equity funds, for instance.

For this reason, there are often policy conditions enabling a life office to defer encashments in times of depressed property market conditions. Advertisements for these products have to mention that values depend on a valuer’s opinion.