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.

Less than 1 year since the initial investment was made  5% of amount cashed in
 Between 1 and 2 years since the initial investment was made  3 % of amount cashed in
 Between 2 and 3 years since the initial investment was made  1 % of amount cashed in

There will be no penalty if you cash in after three years.

You should read the section “Charges” of the  Key Features Documentscarefully 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.