Redundancy, marriage and illness are among major life events that a savings body has suggested should escape incurring an exit fee for the Lifetime ISA.

The Tax Incentivised Savings Association has put forward a proposed list for finance professionals and the public to have their say on.

These include setting up a self-employed business, paying for children's education, and parent’s nursing care fees.

The organisation has launched a survey to determine which are most popular.

George Osborne revealed the new savings vehicle in March but details emerged afterwards of a catch.

If savers choose to take out their money from the Lifetime ISA early, they will lose the Government bonus and have a 5% charge applied, under plans published by the Treasury.

Unless they are buying their first house, investors will already lose the Government bonus and any interest or investment growth on that bonus if they cash in their investment early.

The Budget papers stated that the Government proposed savers could “make withdrawals at any time for other purposes, but with the government bonus element of the fund (including any interest or growth on that bonus) returned to the government, and a 5% charge applied".

Currently, the savings and bonus can be withdrawn based on three criteria:

• House purchase for first-time buyers
• Terminal illness
• Retirement at 60 years old

The Chancellor has said that the Government will be looking to add further lifetime events to the list.

TISA is asking people to select 3 additional lifetime events from the list below:

• Critical illness
• Moving to a bigger home
• Redundancy
• Setting up a self employed business
• Children's education
• Parent’s nursing care fees
• Private medical treatment
• Getting married
• Funeral costs for a relative
• None - there should be no additional penalty free withdrawals allowed
• Other (please specify)

Adrian Boulding, TISA policy strategy director, said: “TISA is conducting this survey as we feel it is important for everyone to have their say on what other significant lifetime events should be included in the design of the LISA.

“We see this as an opportunity for the Government to provide people with more choice and more flexibility.”