If the policy was started before 2001 you will not have to pay tax on the proceeds as tax will have been paid internally by the fund before you get your return. If the policy was started after 2001, you will pay Exit Tax on the proceeds but that will be calculated and deducted by the life assurance company.
Your second question requires a lot more information about yourself before anyone can give a meaningful reply, e.g. your assets and liabilities, your age, your attitude to risk/reward, timeframe you can invest for etc.