Tax implications of life assurance with fund value

B

Berno65

Registered User
Messages
2
I have recently gone through all my insurance and life assurance covers. I have a life assurance policy taken out with Irish life which has a fund value attached. When I asked irish life about this they informed me that I can access this sum at any time. The policy was taken out in 1994.

1) What are the tax implications for this? Is there CGT or income tax on this? The person I spoke to with Irish life didn't think there was but wasn't 100% sure.

2) Are there any hidden catches with cashing this policy out? The cash would be needed now and I have sufficient life assurance cover elsewhere.

Any help would be greatly appreciated thanks

Berno
 
Berno65 said:
1) What are the tax implications for this? Is there CGT or income tax on this? The person I spoke to with Irish life didn't think there was but wasn't 100% sure.
Click to expand...

Hi Berno



I am guessing that Irish Life will take the tax out of it and give you the net proceeds.

But it's not good enough that the person you are talking to doesn't know. You should write them a letter and request an answer.

Dear Irish Life
I am considering cashing this fund.
What are the tax implications of doing so? Is it correct that you deduct the tax before paying me the proceeds and that I have no further tax liability?

What is the maturity date of the policy? Are there any penalties for cashing it early? Or is there any advantage to me in keeping it for another few years?

Alternatively, you should speak to a financial advisor and pay a fee for advice. There are two regular contributors here Steven Barrett and Liam Ferguson who could check the paperwork for you and answer your questions.

Our Story - Bluewater Financial Planning

At Bluewater Financial Planning, our goal is to work with you over your working lifetime and into retirement. We will help you along the way as your life changes and your plans and ambitions change too. We will show you what changes have to be made to stay on track. We will worry about the […]
www.bluewaterfp.ie www.bluewaterfp.ie
www.ferga.com

Brendan
 
Thanks very much Brendan. I have been informed that due to the fact the the policy was taken out before 2001 no tax is due!
 
You must log in or register to reply here.
Back
Top