Irish Life Managed Accumulator Plan - Managed Fund S2 - to Cash in or retain ?

As someone not really acquainted withe the ins and outs of the investment scene I would be glad of advice, opinion etc on the following scenario in which I find myself.
Some years ago, on commencing my first job, I was coaxed, cajoled etc by a very persistent financial adviser for Irish Life into taking out a policy with the company. My late parents thought it was a good idea at the time and so I commenced payment of a nominal monthly sum into said Investment account, which is now called a Managed Accumulator (Managed Fund S2). There were 2 partial encashments over the years to fund specific heavy outgoings at the time.
In recent years I've been getting an annual Plan Summary/Statement showing Plan Summary, Fund Information, Benefit Details etc
On the most recent statement, the current Cash In value of the plan exceeds the total premiums paid in but under the heading Benefit Details there is a figure shown as Life Cover which is lower than the current Cash In value ?
What is my best option at this point vis a vis this Plan, should I :

1. Cash in and reinvest elsewhere for a better return via an independent financial advisor
2. Continue current level of premium payments
3. Increase premium payments if circumstances allow

Apologies if information above may not be adequate to offer an informed opinion or if posted in wrong forum but as I said I've been paying this small premium for a number of years without looking into the value of retaining/raising or encashing and the recent Summary Plan Statement from Irish Life prompted me to look into it in more detail, thus this posting. I realise that I could seek advice from Irish Life but I would expect a sales pitch in response so hoping for some independent advice or direction from the enlightened posters here in Askaboutmoney.
Thanks !

What are you looking for the plan to do? Do you want the money now?

Find out if the life cover is paid out in addition to the fund value? If not, the life cover is useless as the fund value is higher.

Do you need life cover? If so, I would advise you set it up on a stand alone basis as the cost of life cover will eat into your savings very quickly.


Steven
www.bluewaterfp.ie

SBarrett said:

What are you looking for the plan to do? Do you want the money now?
Find out if the life cover is paid out in addition to the fund value? If not, the life cover is useless as the fund value is higher.
Do you need life cover? If so, I would advise you set it up on a stand alone basis as the cost of life cover will eat into your savings very quickly.
Steven

Click to expand...

Many thanks for your response Steven.
While I don't need the money now, I was concerned about the issue of life cover v current fund/cash-in value as identified by you. In this regard I've sought clarification from Irish Life as advised.
I can post on response from Irish Life in due course if it would be of interest to others here.
Thanks again
T.

A lot of those old plans were designed to have life cover to provide a minimum payout in the early years when the savings were low. Once the fund value was more valuable than the life cover, this cover is now a cost and you should get rid of it.

Let me know how you get on.

Steven
www.bluewaterfp.ie

Thanks again for your comments Steven.
I received a very prompt reply from Irish Life regarding my policy. My plan is essentially a savings plan with a minimal amount of life cover, something to do with availing of a tax break at the time. In the event of my demise the pay out is the higher valued of (1) the sum assured or (2) the surrender value at that time. Your assessment of the situation was therefore accurate.
My decision now is whether to continue with the savings element of the plan at current premia, increase it (ie save more) or seek a better return by cashing in and investing elsewhere - is it possible to evaluate how this Managed Plan is performing as against alternative savings options ?
Thanks again for your advice on this !

For educational value, what's the tax position on the income and capital elements of this product if (1) u encash it. (2) exit planet while its still in existence?
A normal life cover policy would be tax free....
Just wondering

I'd get rid of the life cover then, it is now a cost with no benefit.

Ask them for:

1. Allocation rate - how much of your premium is actually invested
2. Annual management charge
3. What other funds are available under that contract

I don't think there are any free sites where you can compare the fund performance of one company against the other. I pay for the site I use.
You can have a look at Irish Life's funds here:

[broken link removed]

Remember, it's not as simple as just picking the best performing funds. There is a correlation between return and risk. Then some fund managers take more risk to receive their returns, they may be at the end of a run or another may be just at the beginning. It's best to pick a strategy that is designed around the level of risk you are comfortable with and stick with it.



Steven
www.bluewaterfp.ie

ircoha said:

For educational value, what's the tax position on the income and capital elements of this product if (1) u encash it. (2) exit planet while its still in existence?
A normal life cover policy would be tax free....
Just wondering

Click to expand...

Looked into this , advised that encashment value quoted is net of Exit Tax, which is reckonable on the growth element of the plan.