Savings and Investments FAQs

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Savings and Investments

 What is a lump sum investment?

A lump sum investment is where you make one off or single investment in a policy. Normally you can make additional lump sum investments to the same policy.

 What is a regular premium policy?

A regular premium policy is a policy that you invest in each month, quarter, half year or year.

 Can I access my money?

Yes, you can withdraw money. If you do so within 6 years of investing, an early encashment charge may apply. This may be up to 5% of your withdrawal. To make a withdrawal, complete this Instruction.

 What is an ETF?

Generally ETFs (Exchange Traded Funds) are like investment funds, but they trade on major stock exchanges just like shares.

Unlike investing in individual shares, most ETFs offer the benefits of a diversified portfolio covering the component stocks of an underlying index. In other words, many of the risks involved are reduced by spreading them across a wide portfolio.

Typically, ETFs can be traded during dealing hours so investors can check prices and place orders just like for shares.

 Is my investment subject to tax?

For policies taken out since 2001, the growth in your policy is subject to an exit tax (currently 41%).  It's deducted from your policy every eight years and from any withdrawal, surrender or death claim.

If you are no longer an Irish resident for tax purposes when exit tax is due, then you may not have to pay it.  You may be subject to the tax rules of the country you have moved to.

If the policyowner is a company, the exit tax is currently 25%

 What happens to my investment if I die?

If you invested in an investment policy on your own, then we will pay 101% of the value of your policy to your estate.

If you invested in an investment policy jointly with someone else, for example your spouse and they are still living, the policy will continue until their death.  We would then pay 101% of the value of the policy to your spouse's estate.

When an estate is divided out to beneficiaries, they may have to pay inheritance tax.