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FAQs
INTERNATIONAL ASSURANCE (IAL)
1 | Who owns International Assurance Ltd
IAL is ultimately owned by 5 individuals. These details are available upon request.
2 | How experienced is the Board of International Assurance Ltd?
The Board consists of 9 highly experienced insurance specialists. Collectively they have over 275 years of experience in this industry. The board members are disclosed on the website www.international-assurance.com
3 | Who is the regulator?
The Financial Services Commission (FSC) of Mauritius.
4 | Is IAL regulated in countries other than Mauritius?
IAL is only regulated in Mauritius and doesn’t employ anyone outside of this country.
5 | How safe are assets in a policy?
All policy assets are held by highly reputable custodians such as JP Morgan, Bank of New York Mellon, HSBC etc. All assets are held in Protected Cells meaning that should IAL go into liquidation those assets are ring-fenced and cannot be taken to cover debtors etc at the company level. IAL has no balance sheet risk as all insurance risk is mitigated by 100% reinsurance treaties with Gen Re, Generali or Gallagher Re, Kenya Re & Hollard.
6 | What safeguards are in place?
IAL has put various safeguards in place protecting policyholders’ assets, including:
- The Protected Cell structure ensures that policyholders’ assets are ring-fenced meaning that creditors have no access to policyholder assets;
- Regulatory oversight with regular audits;
- Strong governance with the support from an experienced Board of Directors;
- The 100% reinsurance treaties mean that IAL has no balance sheet risk;
- Third-party, world class custodians (including but not limited to Interactive Brokers, Bank of New York Mellon Pershing, HSBC, Barclays, etc);
- A secure payment process: every payment requires compliance vetting after 2 administrators have processed and checked the payment. Once loaded the
payment then needs to be signed off by an executive and a non-executive director;
- More than sufficient unencumbered capital. The Insurance Act requires insurance companies to have sufficient unencumbered capital to cover 100% of their
actuarial liabilities. IAL’s Board of Directors requires that this figure never falls below 125%. To date, IAL has never had less than 300%.
7 | What CRS/FATCA reporting is done? To whom?
The policy is CRS and FATCA compliant, with reporting made annually to the Mauritian revenue authorities.
8 | Is there CGT on my policy?
CGT is usually only applicable when withdrawals exceeding contributions have been made. Please get independent tax advice.
9 | Are the tax benefits the same across jurisdictions?
No. Tax benefits differ across jurisdictions, but the policy is designed to be tax-efficient globally.
10 | Why take out a policy instead of having a trust?
There are two main advantages of taking out a policy rather than having a trust:
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Firstly, in most jurisdictions, making contributions to a life insurance policy is generally tax-free; however funding a trust generally has tax implications for settlors.
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Secondly, the policyholder retains full control of the assets within the policy, but has to cede control to the trustees in a trust.
11 | How does one sign up for a policy?
Your Financial Advisor will be able to talk you through the process, but it is as simple as completing an application form and providing the required KYC documentation. Your Financial Advisor will then send it through to the IAL Customer Services team who will process the onboarding and send you a letter of confirmation for you to then instruct payment of the premium.
12 | What are the fees? Are they customisable / negotiable?
IAL’s fees are explicitly stated in the application form of each product. There is a level of flexibility for very large premiums.
13 | Can an applicant deal directly with IAL, as I don’t have a financial advisor?
IAL does not deal directly with policyholders. Policy applicants should appoint a suitable intermediary who will have terms of business set up with IAL to act as the intermediary.
14 | Can an investment manager be appointed to manage a policy?
Yes, an investment manager may be appointed to manage investments held within a policy. They would be required to have terms of business with IAL.
15 | Can I dictate where my assets are custodied?
IAL already has Terms of Business with a wide variety of settlement houses, each of whom have their own set of custodians. They would only consider expanding this list for large premiums or if that settlement house’s custodian could provide a better solution than those already onboarded.
16 | Who are IAL’s policies suitable for?
IAL has structured policies and products to provide solutions for a wide variety of clientele.
The lump sum solutions such as the Linked Investment Policy is suitable for any individual, trust or corporate wanting to structure their investments in a confidential and secure manner. While it was structured with High-Net-Worth individuals in mind, IAL believes that anyone should be able to benefit from the structure and so it is available to anyone who meets the minimum criteria.
The Regular Savings Plan is structured for those who do not have sufficient available cash/assets to meet the minimum criteria for a lump sum but who want to invest a moderate amount on a regular basis.
The Corporate Savings Scheme is structured to assist corporates provide a pension-like savings structure to their employees without having to commit to a structured government pension plan.
17 | Can a joint policy be written?
Yes, our lump sum solutions for individuals can be written by multiple joint policyholders. Bear in mind that the ownership of the policy is split in equal parts between the policyholders and therefore all instructions would need to be signed off by all parties.
18 | Does the policyholder have to be the life assured?
The policyholder and life assured can be different individuals. There does however need to be an insurable interest between these 2 parties (e.g. husband and wife, key business partners, etc). The policyholder can be a legal entity such as a corporate or a trust, while the life assured(s) must be a natural person(s).
19 | Can a policy have multiple life assureds?
Yes. This assists with continuation of the policy beyond the death of the first life assured. The policy will only pay out on the death of the last life assured.
20 | Who can be named as the beneficiary of a policy?
The beneficiaries can be any natural person(s), a corporate, trust or even a charity. There does not need to be any direct relationship between the life assured and the beneficiary.
21 | Can the life assured be the beneficiary?
No, the life assured cannot be the beneficiary. Policies pay out to the beneficiary on the death of the last named life assured. The policyholder can be the beneficiary if they are not the life assured.
22 | How often can nominated beneficiaries be changed and at what cost?
Beneficiaries can be updated at any time, at no cost.
23 | Can the policyholder add new lives assured?
Yes, prior to the death of the last life assured, the policyholder can elect to appoint new lives assured to ensure continuity in the event of a death.
24 | What assets can be held in a policy?
In theory, a policy can hold any negotiable instrument from private equity to listed assets, currencies, digital assets etc. IAL operates using an open architecture structure meaning that they do not provide policyholders with lists of assets to choose from. Any instrument may be accepted into the policy provided it meets the investment criteria suitable to an insurance policy. IAL has an Investment Committee which analyses the instruments’ suitability and IAL reserves the right to reject any such instrument that may not be in the best interest of the policyholder. Limitations on assets vary according to each product.
25 | What is the minimum that I can invest? Can I add to my policy?
The minimum initial premiums vary according to each product. Please consult your Financial Advisor for more information.
26 | What currency can my policy be in?
Policies can be denominated in any of the major currencies (USD, GBP or EUR). Policy contributions can be made in all of the major currencies as well as some others (including USD, GBP, EUR, AUD, CNY).
27 | Do underlying assets have to be in matching currencies?
The underlying investments may be in any currency that is available at custodian level.
28 | Does IAL accept asset transfers in from / out to a third party provider?
Yes. Asset transfers in (in-specie contributions) and out (in-specie transfers) are permitted. IAL does not restrict clients to pure cash transactions.
29 | Can assets be transferred between policies?
Yes, assets can be ceded to another policy.
30 | Can a policy be transferred to someone else?
Yes, the ownership of a policy can be assigned to someone else.
31 | Who owns the assets in a policy?
Legal ownership of the assets in a policy vests with the insurer, but the policyholder remains the ultimate beneficial owner (UBO). IAL has a matching liability on its balance sheet corresponding with the value of the assets in your policy.
32 | Can private companies be put into a policy?
Yes, privately held companies are listed as permissible investments under the Insurance Act. This would be held in a lump sum solution such as IAL’s Linked Investment Policy.
33 | Can physical real estate be held in a policy?
Yes, real estate can be held in a policy provided it is held via an SPV such a corporate. IAL will not hold any direct real estate assets in policies.
34 | Can a trust open a policy?
Yes, the policy would be in the name of the Trust on behalf of the Trust Company, IAL would require due diligence on the Trust and Trustees.
35 | Can a policy be surrendered?
Non zero-cash value policies can be surrendered partially or in full at any time. Payment will normally only be made to the policyholder(s).
36 | Can withdrawals be made from a policy?
Withdrawals are allowed at any time. Payment will only be made to the policyholder(s).
37 | What happens when the life assured dies?
Upon receipt of the notice of death and the supporting documentation such as the death certificate, IAL will pay the death benefit to the nominated beneficiaries named in the policy provided they were named prior to the death of the life assured. Depending on jurisdictions, there are potential tax advantages as the policy falls out of estate. It also avoids probate and public disclosure. If however, the life assured / policyholder never nominated a beneficiary while they were living, the policy would need to be dealt with by the executor of the estate. It is always recommended to nominate a beneficiary while the life assured is still living. IAL will pay the death benefit to the beneficiary’s bank account, via an in specie asset transfer or to their own policy that they may take out with IAL.
38 | What is the Death Benefit?
The Death Benefit is the amount that is paid out to the beneficiary on the death of the life assured. This is the value of the policy at the notice of death plus the smaller of USD500 or 1% of the net amount invested in the policy.
39 | Does the policy fall in or out of estate?
This depends entirely on the policyholders’ tax residency. In most instances the policy falls in estate while the life assured is living but falls out of estate upon death. Please seek independent tax advice in this regard.
40 | If the policyholder dies, who then replaces him/her?
If the policyholder differs to the life assured, then in this event, the life assured becomes the policyholder.
41 | Can a beneficiary open a policy?
Yes, subject to eligibility and compliance screening, beneficiaries can elect to use a policy for any benefits they receive.
42 | Does a beneficiary have to be nominated?
While it is not necessary, it is highly recommended that a beneficiary is nominated in order to avoid probate and public disclosure and allow for a smooth payment of the death benefit to the beneficiaries. If a beneficiary is not nominated, these assets will be included in the deceased’s estate and distributed accordingly.