Navigator Investment Bond

You can start investing in Navigator Investment Bond from €15,000 with the option to top up by €1,000 at any time. There is a maximum investment of €1,000,000 for the Property Portfolio Fund.

To cover the cost of setting up and maintaining your Navigator Investment Bond investments, we apply the following charges:

1. Entry charge 

There is an entry charge of 1% if you invest less than €24,752.48 (€25,000 inclusive of the 1% levy) in Navigator Investment Bond. If you choose to make an extra single payment at any time, the investment factor for the extra single payment may be different from the investment factor applying to your initial single payment.

The amount invested at that date will be your extra single payment multiplied by an investment factor. The investment factor for extra single payments will be those available at the time you make the extra single payment.The amount not invested is a charge. Before making a single payment, we advise that you check with Irish Life or your Ulster Bank Financial Planning Manager as to what the investment factor will be for your extra single payment.

2. Standard fund charge

The fund charge each year will depend on the option, or mix of options, that you choose to invest in. The standard fund charges are detailed in the Navigator Investment Bond brochure

Reducing the value of the fund

When there are more customers moving out of a fund than making new investments in it, we may reduce the value of the units in the fund. This is to reflect the percentage of the costs associated with buying and selling the assets of the fund. The reduction in the value of the affected assets will be different for each fund and is likely to be most significant for the percentage of any fund invested in property.

3. Variable fund charges

We won’t increase any of the charges outlined earlier unless we need to because of an increase in the costs of dealing with the investment. If this happens, we will give you notice of the increase. However, the charges on the Multi Asset Portfolio range of funds are variable which means they can be higher or lower than the charges shown on page 32. The charges on the Multi Asset Portfolio range of funds may also change if the fund invests in a range of other funds. The proportion invested in each fund may change over time. Also, if the charges on individual funds change, this will change the overall fund charge. Variable charges may be added to other funds over time. The factors that may cause the variable charges to be higher or lower than that shown are set out in your Terms and Conditions booklet. Full details on all charges can be found in the Navigator Investment Bond brochure.

4. Early cash-in charge

You will pay the following charge on any amount you withdraw from any investment you make in each of the Navigator Investment Bond investment options.

Years 1 to 3 5%

Year  4        3%

Year  5        1%

Please read the Customer Information Notice and your terms and conditions for full details of the charges and the effect they will have on your investment.

Reducing the value of the fund

When there are more customers moving out if a fund than making new investments in it, we may reduce the value of the units in the funds top reflect the percentage of the costs associated with buying and selling the assests of the fund. The reduction is likely to be most significant for ther percentage of any fund invested in property.

Notice Periods ( Delays )

In certain circumstances, we may delay switches, withdrawals or transfers out of a fund. This is referred to as the 'notice period.' This may be because there are a large number of customers wishing to switch into or out of the fund at the same time, or if there are practical problems buying or selling the assets within the fund or if an external manager who is responsible for the investment of any part of the fund imposes such a delay. Delayed transactions will be based on the value of units at the end of the period whenthe transaction actually takes place. If you have invested in a property fund, a significant delay would be likely to apply depending on the nature of the underlying assets. Once you have given us notice that you want to switch, withdraw or transfer out of a fund, you cannot change your mind during any notice period. You should read the fund description of your chosen fund to check if a notice period applies.

You can switch funds at no extra cost. Log on to www.irishlife.ie for more information.

In addition to making your initial investment, you can top up your Navigator Investment Plan at anytime, provided the additional amount you invest is at least €1,000. In rare circumstances, we may decline this additional payment. However, in that case, we will tell you the reason for our refusal.We will invest your extra payment in thesame way as your original lump sum isinvested at that time. This means thatthe Auto-Start period does not restart foryour top up amount. So, for example, ifafter 5 months, your funds are invested50% in the Auto-Start cash fund and 50%in Multi Asset Portfolio Fund 4, your topup amount will then be invested 50% inthe Auto-Start cash Fund and 50% in theMulti Asset Portfolio Fund 4.

You can ask us to automatically cash in a percentage of the value of your Navigator Investment Bond to give you regular withdrawals each year. This service is at no extra cost. The regular withdrawals you can take are between 1% and 8% of the value of your fund before tax (except for the Property Portfolio Fund where the maximum is 4%).

You can choose how often you want to take your regular withdrawals. You can take a regular withdrawal every month, three months, six months or every year. If you want to take a monthly withdrawal, we will pay it direct to your bank. Any withdrawal you make will be taxed based on the growth made by that particular amount you are withdrawing. The tax rate is currently 41% (September 2015). We pay this tax on your behalf and then pay you the remainder. If you are taking regular withdrawals at a higher level than the actual growth on your investment then the value of your investment will fall and could be less than you originally invested.

You can usually cash in any of your investment at any stage. You may have to pay the early cash-in charge on any amount you withdraw. You can find out more details of when the early cash-in charge will apply on page 33 of our Navigator Investment Bond brochure. In certain circumstances we may need to delay withdrawals out of a fund.  The circumstances in which we may delay a withdrawal can include the following:

 • If a large number of customers want to take money out of the same fund at the same time.

 • If there are practical problems selling the assets in which the fund is invested.

 • For externally managed funds, if the external manager places a restriction of the fund.

Delayed transactions will be based on the value of the units at the end of the notice period. The smallest amount you can take from your investment is €350. The value of your investment left, after you cash in part of your investment, must be at least €1,250. You will have to pay tax on any profit you make when you cash in any of your investment (please see the next section ‘What tax do I have to pay?’). The smallest amount you can take from your investment is €350. The value of your investment left, after you cash in part of your investment, must be at least €1,250. You will have to pay tax on any profit you make when you cash in any of your investment (please see the next section ‘What tax do I have to pay?’).

You will pay tax on the profit your investment makes. The tax rate is currently 41% (September 2015). If the plan is owned by a company the tax rate that applies may be different. We pay this tax for you from your fund and send it to the Revenue. We must deduct tax on the following events:

• You cash in any of your investment at any stage, for example, if you take a regular withdrawal.

• Every 8th anniversary from the start of your investment. Where tax is deducted from your fund on each 8th anniversary, this tax can be offset against any tax that is payable on a subsequent full encashment.

• If we pay death benefits.

• If you transfer the bond to someone else. There are some exceptions to this however; you must inform us if you transfer ownership of the investment to someone else. You may also have to pay tax on funds that invest in property outside of Ireland. The Diversified Assets Fund and the Property Portfolio Fund invest in both Irish and European property. Under current UK tax law, any income we receive from rent in UK property investments will be taxed, after allowable expenses, and any interest payments, at a rate of 20% as of September 2015 Any tax due will be taken from the funds and will be paid to the UK Revenue. For the investments in European property, tax will be deducted on rental profit if this is required by the domestic tax rules of the relevant country. In some instances, depending on the domestic tax rules of the country, capital gains tax may also be payable on capital gains made within the fund. Any tax due will be deducted from the fund and thus reflected in the fund performance.

If tax legislation and practice changes during the term, this will be reflected in the fund value. This information is based on current tax law (September 2015) which could change in the future.

Life Assurance levy. We will collect any government taxes or levies and pass them directly to the Revenue Commissioner. The current government levy on life assurance payments is 1% (September 2015). We will pay this levy out of the money received from you. We will then invest the rest of your money in Navigator Investment Bond. This will be your investment amount.

If you die, we will pay you 100.1% of the cash-in value of your investment, less any tax. If you are a joint investor, and one of you dies, your Navigator Investment Bond will transfer to the other investor. You should understand that if you die the cash-in value is not guaranteed and could be higher or lower than the amount you invested. We will pay this on the date we receive all documents we need for a death claim.

We want to make sure that you are happy with your decision to invest in Navigator Investment Bond. You will have 30 days from the day we send you your Welcome Pack to change your mind and cancel the investment. If you decide to cancel at that stage, you will get back the original amount you invested, less any reduction that may have taken place in the value of your investment while it was in place.