PENSIONS
INVESTMENTS
LIFE INSURANCE
LONG TERM SAVINGS PRODUCT
(LTSP) INFORMATION
PRIVATE SECTOR PRODUCT
KEY CHARACTERISTICS AND FEATURES
• The Long Term Savings Product is a regular contribution unit linked savings policy. The product is open-ended but with a target
maturity date of the client’s expected retirement date.
• The Long Term Product is a gross life product, so contributions are payable from post tax income and exit tax (currently 41%) applies
to any investment gains. As it is an insurance policy the 1% insurance levy applies to contributions.
• The minimum regular contribution level is €300 per month. No withdrawals or surrenders are allowed in the first 12 months. After
this encashments are limited to two in any 12 month period with a minimum encashment of €1000 before exit tax.
• Regular contributions may only be collected by a payroll deduction arrangement.
• The product offers a range of unit-linked investment funds with degrees of risk. The product also offer a choice of two lifestyle
strategies that reduce the expected level of potential ups and downs in funds as the client approaches maturity by automatically
switching to lower risk funds on a gradual basis in the years prior to the expected maturity date.
• The benefit on maturity or encashment (before any exit tax) will equal the number of units in allocated to the policy by the
appropriate published fund price.
• The benefit on death will by 100.1% of the benefit on encashment.
• The product is described in literature as being designed for people for whom further pensions funding may no longer be tax efficient
but who wish to continue saving regularly for their retirement.
• The product holder may not assign the product, nor may they assign any of the benefits, rights or duties which may arise under the
product.
TARGET MARKET - REASONS WHY SOMEONE MAY
WISH TO TAKE OUT A LONG TERM SAVINGS PL AN
The target market for the Long Term Savings Product is for high earners in the Private Sector who have or are expected to soon exceed
the Standard Fund Threshold for pension funding. The product is aimed at employees whose employers wish to continue to pay
contributions into a long term saving vehicle for them even though further pension funding is no longer sensible.
Employers will pay contributions as additional salary to their employee who will in turn agree to invest regular amounts within the
product by deduction from salary.
The product is designed for people for whom further pensions funding may no longer be tax efficient but who wish to continue saving
regularly for their retirement, and who have no need to access their funds in the first 12 months.
NATURE AND EXTENT OF RISKS INHERENT IN THE PRODUCT
The investment performance of any fund that is available in Long Term Savings Product is linked to the change in market value of the
assets that underlie that fund. The value of these assets can fall as well as rise and any investor may receive less in value than the total of
their contributions made.
Each fund choice available has a risk rating that gives an indication of the expected levels of potential ups and downs in the performance
of the fund over the medium to long term. If the investment is held for a shorter timeframe, then the expected variability in performance
can be greater.
GUARANTEES
There are no guarantees attaching to any of the investment options that are available in the Long Term Savings Product.
Please Note: Every effort has been made to ensure that the information in this publication is accurate at the time of going to press. Irish Life Assurance plc accepts no
responsibility for any liability incurred or loss suffered as a consequence of relying on any matter published in or omitted from this publication. Readers are recommended
to take qualified advice before acting on any of the matters covered.
CONTACT US
4890cb (Rev 1-15)
PHONE: 01 704 20 00
FAX: 01 704 19 05
E-MAIL: [email protected]
WEBSITE: www.irishlifecorporatebusiness.ie
WRITE TO: Irish Life Assurance plc,
Lower Abbey Street, Dublin 1
Irish Life Assurance is regulated by the Central Bank of Ireland.
In the interest of customer service we may record and monitor calls. Irish Life Assurance plc,
Registered in Ireland number 152576, Vat number 9F55923G.
For more up-to-date information, see www.irishlifecorporatebusiness.ie.