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REVIEW SUMMARY

Investors Trust S&P 500 Index Savings Plan

Investors Trust is a globally recognised brand that represents the ITA Group of Companies.

ITA International Holdings is the parent company of Investors Trust Assurance SPC based out of the Cayman Islands, ITA International Insurer, a Puerto Rico based and licensed company, both rated “A-” by AM Best, and ITA Asia Limited, a Labuan-licensed company based in Malaysia.

Investors Trust work in Cayman Islands, Malaysia and Puerto Rico with service points in Dubai, Hong Kong, Uruguay and a corporate support office in the U.S.

They offer a variety of lump sum products tailored to meet the different risk profiles. Ranging from capital protected fixed income portfolios to alternative investments.

Investors Trust is licensed and regulated by the Cayman Islands Monetary Authority and essentially specialise in the provision of investment–linked insurance.
Overview
FAQ
Customer Reviews
Expert Verdict

The Investors Trust S&P 500 Index savings plan is a contractual offshore regular savings plan.

Investors Trust S&P 500 Index plan provides investors access to 500 leading stocks representing the most widely held companies from all sectors of the economy.

They claim that the plan provides principal protection derived from structured notes provided by highly rated financial institutions and the ability to participate in stock market growth without the downside risk.

The Investors Trust S&P 500 Index also provides the flexibility to choose a plan that fits your individual needs with 10, 15 and 20 year term options.

The key features of the S&P 500 Index savings plan are as follows:

  • The S&P 500 Index is a regular contributions plan.
  • The plan is only available in one currency, that is USD ($).
  • Investors Trust claims to offer 100% participation in the growth of the S&P 500 Index.
  • The available investment terms of the S&P 500 Index savings plan is 10, 15, and 20 years.
  • The plan is marketed as 'principal protected'.

Let's have a brief look at what exactly the Investors Trust S&P 500 Index savings plan entails:

Topic

 Description
   
Currency USD $
   
Minimum Contribution Amount USD 2,400 per annum
   
Minimum Increase Amount USD 2,400 per annum (As Rider)
   
Modal Premium Annually, Semi-annually, Quarterly, and Monthly
   
Investment Terms Available 10, 15 and 20 years
   
Principal Protection 10 Year Term: 100%
15 Year Term: 140%
20 Year Term: 160%
   

Loyalty Bonus

(Percentage of Total Contribution During the Period)

 1 - 10 Years: 7.5%
11 - 15 Years: 7.5%
16 - 20 Years: 5.0%
   
Issue Age 10 Year Term: ages 18 - 60
15 Year Term: ages 18 - 55
20 Year Term: ages 18 - 50
   
Guaranteed Death Benefit In the event of a relevant death, the standard amount payable will be 101% of the Account Value.

 

The S&P 500 Index savings plan also allows for free partial withdrawals after the completion of the initial period, subject to maintaining USD 2,400 surrender value (while free partial withdrawals are available, they negate the guarantee).


The charges of Investors Trust S&P 500 Index can be summarised below:

Topic

 Description
   
Annual Administration Charge 10 Year Term: 2.0% per annum
15 Year Term: 1.7% per annum
20 Year Term: 1.1% per annum
   
Policy Fee USD 10 monthly
   
Structure Fee 0.125% monthly of account balance
   
Surrender Charge The value of the remaining initial units.

 

NOTE:

  • Monthly payments are only available with credit cards and direct debit.
  • There are a lot of exceptions to their guaranteed protection. This protection includes loyalty bonuses. All premium payments due must have been received within the grace period, with no contributions decreases or partial withdrawals, to qualify for guarantee. The underlying principal protection is derived from structured notes provided by highly rated financial institutions. The investor is facing issuer/counterparty risk of these institutions. An insolvency of these institutions could lead to a partial or total loss of the capital invested by the investor. 
  • All premium payments due must have been received within the grace period, with no contributions decreases or partial withdrawals, for the loyalty bonus to take effect. Loyalty bonus will be paid after years 10, 15 and 20. The S&P 500 10 year plans are not eligible for loyalty bonus.
  • We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

 

 

The Pros

> Good brand name
> Potential for better than bank rate return if all contributions are made throughout the term
> Lack of flexibility may encourage discipline of saving

The Cons

> Inflexible
> Opaque and complex charging structure
> Expensive way to invest
> Easily mis-represented at the point of sale
I am 28 years old, am I eligible for this plan?

Yes, you would be eligible for the plan subject to the jurisdiction you come under.

However, in general, all 3 terms of the Investors Trust S&P 500 Index savings plan can be issued to someone your age:

  • 10 Year Term: ages 18 - 60
  • 15 Year Term: ages 18 - 55
  • 20 Year Term: ages 18 - 50
What is the minimum I can invest in the S&P 500 Index savings plan?

The minimum contribution amount for the S&P 500 Index savings plan is USD 2,400 per annum.

Additional increases can be made.

The minimum increase amount allowed is USD 2,400 per annum (As Rider).

Is the Cayman Islands a safe jurisdiction?

The Cayman Islands lack regulatory enforcement and protection for investors which is a red flag as far as we are concerned - think carefully about what recourse you would have if the company were to suffer any financial set-backs.

Think before you sign up for a 15 year savings commitment

Someone tried to sell me this and I just couldn't imagine where life would take me 15 years down the line to commit to it.

Especially since there is no flexibility if circumstances require me to access it sooner. 

He pushed on about the guaranteed return and so on, but I did my research and I know all 'guaranteed returns' have a catch.

 

I took out the S&P500 savings plan and was quite happy for the first year

After it had been a year for the policy, I started to realise it was totally inflexible, expensive and NOT what I wanted at inception.

I wanted something better than a bank account but with lower risk (that's what this was sold to me as by the IFA). 

I now have to keep going with it for the term to avoid expensive penalties and losses.

Expert assessment of Investors Trust S&P 500 Index savings plan

Although this product is arguably more attractive than other contractual savings schemes, it has now been superseded by more cost effective, flexible and less complex options.

If you already have an Investor Trust S&P 500 Index savings plan from Investors Trust and it is worth £250,000 or more, we strongly recommend you seek a Second Opinion to ensure you are on track to get and keep the life you want.

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