Most types of investment have charges. Even building societies and banks have charges. There is an initial charge of 4% applied to all monthly, annual and lump sum investments up to £4999.99 before allocating to units.

For lump sum investments between £5,000 and £6,999.99 there will be an initial charge of 2% before allocating to units. For lump sum investments of £7,000 and above including funds transferred from another provider, there will be no initial charge and 100% of your investment will be allocated to units. If you cash in part or whole of your LICI ISA within the first five years, an early encashment charge will apply and you may get back less than you paid in.

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 plan. 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 plan on the tenth anniversary only, from the date the plan started.
• On payment of the death benefit.