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Does IPSec (Cisco VPN Client) "Send all traffic/Encrypt entire connection)

Alright, this might sound stupid, but i've search Wiki, Google for IPSec on whether is it being encrypted thoughout the entire VPN session
or
it's just mutual authentication and the connection is only encrypted when connecting to intranet.

because when connected via iPhone (Remote Access > Cisco VPN Client),
when pointing my web browser to What Is My IP Address? Lookup IP, Hide IP, Change IP, Trace IP and more... , i see my 3G/HSPA's IP address and my cell phone carrier instead of my broadband's IP address and ISP.

So i guess the entire session of IPSec (not L2TP over IPSec) is not encrypted except that it's used for authentication and encryption to intranet?


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