| Under the new gross roll-up system, tax on investments must now be paid on the encashment of the policy, rather than on an annual basis. |
| No early encashment is possible, and an annualised fee of up to 1 per cent is charged. |
| It provides tax-free investment growth but applies an exit tax of standard rate, plus 3 per cent on any gain realised on encashment. |
| The umbrella approach ensures flexibility, but incurs tax on all the investments in the portfolio on encashment, regardless of the number of funds being cashed in. |
| Pension specialists say early encashment penalties can vary enormously, depending on how long you've been contributing to the scheme. |
| The product has the attraction of not having early encashment charges, i.e. the investor can exit at any time at daily prices. |
