Yes you can - but you will be stung by fees and charges - as outlined below.
If you want a plain English summary of what you will have to pay, we would suggest getting a Second Opinion Review and we'll be able to break down exactly what you will pay.
Withdrawals:
Withdrawals may be made on a regular or ad hoc basis to provide an income, subject to normal withdrawal rules and charges, provided contributions totaling at least USD 20,000 have been received.
There is a charge, currently GBP 29 per withdrawal, which is waived, depending on the amount of the total contributions paid and the frequency of income payments.
Surrender and withdrawal:
Withdrawals can be made at any time, for the value of units cancelled less the balance of the year’s management charge on the amount withdrawn and the discontinuance charge - if appropriate.
The value is calculated using the applicable unit bid prices.
The minimum withdrawal at any time is USD 200.
On full surrender, the balance of the year’s annual management charge, the balance of the year’s service charge and any establishment charge due but not yet applied to the contract will be applied in addition to the discontinuance charge if appropriate.
Units relating to contributions which have been allocated for less than seven years are subject to a discontinuance charge on withdrawal or full surrender.
This charge is 7% of the value of the units if the related contribution has been allocated for less than 12 months, reducing by 1% for each complete year the related contribution has been allocated.
If only one contribution has been paid, all of the units relate to that contribution.
If subsequent contributions have been paid, the number of units related to each additional contribution is calculated by applying a factor to the total number of units (after the contribution has been applied to the contract).
The factor is equal to A/B, where A is the amount of the contribution in question and B is the total fund value immediately after that contribution has been applied.
This discontinuance charge is waived when units are sold which relate to contributions that have been allocated for between five and seven years, provided that the amount withdrawn does not exceed 10% per year of the sum of those contributions.
If the contract is fully surrendered within three years and the minimum contracted contribution has not been received, the additional charge, currently GBP 420, is applied by cancellation of units.
Where a withdrawal takes place within that period and before the minimum total contribution has been received, if the value of the units remaining allocated to the contract after the withdrawal will be less the additional charge, the contract will be surrendered in full.
