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Most types of investment have charges. Even building
societies and banks have charges.
There is no initial charge in LICI UK Steady Growth With
Profit ISA. Your entire money goes into a
life insurance plan that buys units in the ISA fund.
The rate of bonus declared allows for a charge for expenses
at 1.5% of the policy value each year. This may be greater than actual bonus
declared.
If you cash in part or whole of the Steady Growth With Profit
ISA in the first three years, an early encashment charge will apply at the
following rates and you may get back less than you paid.
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Less than 1 year since the initial investment was made
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5% of amount cashed in
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Between 1 and 2 years since the initial investment was made
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3 % of amount cashed in
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Between 2 and 3 years since the initial investment was made
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1 % of amount cashed in
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There will be no penalty if you cash in after three years.
You should read the section “Charges”
of the
Key Features Documents
carefully and ask us for clarification if there is any doubt
MARKET VALUE REDUCTION
The Market Value Adjustment (MVR) is a potential reduction to
the amount that you would receive should you cash in part or all of your policy.
It is designed so that with profit policyholders receive a fair share of LICI’s
With Profits Fund when adverse events occur. For example when there are large
falls in stock markets or a large number of other investors cash in their units.
We will not apply an MVR in the following circumstances:
When you cash in part or
all of your policy on the 10th
anniversary
from when you first started the policy and on 5th anniversary
thereafter.
On payment of
the death benefit.
Please
read “What is the Market
Value Reduction” section of the
Key Features Documents for
full details.
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