Maximum Investment Plans (MIPs)
MIPs are fixed term, usually ten year, unit-linked endowment policies, offered by insurance companies and friendly societies.
A range of funds is usually available with differing levels of risk and potential for growth.
The policies are funded by a regular premium, with a minimum contribution.
A MIP provides the minimum amount of life cover allowed in a qualifying policy, in order that the accumulated fund can provide the maximum savings potential.
This means that the sum assured must be at least equal to 75% of the total premiums payable.
A MIP also aims to make optimal use of the tax benefits open to qualifying policies.