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Providence Life Orbit Portfolio Bond Review – that will be the title of today’s article.

If you already have this investment, or been proposed it, and are looking for better alternatives as an expat, you can contact me using this form, or via email (advice@adamfayed.com).

What are the basics about Providence Life

Providence are a relatively new life assurance firm, whose main clients are expats around the world. They are domiciled in Mauritius.

They are used globally, but especially in Japan, Thailand and South East Asia and various countries in Africa.

What are the currencies available?

The main currencies available are:

What are the account minimums?

The account minimums are:

The minimum top up rate for additional contributions is 4,500USD, or similar in other currencies.

What are the typical fees?

The typical fees work out at between 1.5%-2.5% per year, including your advisor and Providence’s fees. The exact fees depend on how much your advisor charges you on day one.

A typical structure looks like this:

Whilst charges differ depending on who your advisor is, we do know what Providence charge for this bond.

Firstly, there is the annual management charge. This works out as 1.25% on accounts worth $30,000-$99,900. It drops to 1% over 100,000, 0.75% above $3000,0000 and 0.50% above $500,000.

There is also a $300 a year admin fee on accounts below $300,000 and $200 on accounts worth $500,000. There is no admin fee on accounts worth over $500,000.

Are there fees for getting out?

No there are not for cashing out the investment, but this is usually because the advisor charges an initial and ongoing fee that comes out on day one.

Even if he/she doesn’t, the ongoing fees are quite high.

What are the positives associated with this offering?

What are the negatives?

The main negatives are

Conclusion

This isn’t a bad option for some expats. It is flexible, with some decent fund options.

But better alternatives exist in the market, for the vast majority of investors, as this option can be expensive and lacking in alternative investment assets, which is important when diversifying your assets.

Pained by financial indecision? Want to invest with Adam?

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Adam is an internationally recognised author on financial matters, with over 735.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

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