Posted by Flora Maudsley-Barton | November 23, 2012
Extending a Skandia Maximum investment plan
Skandia has now closed their Maximum Investment Plan (MIP) but if you already have a MIP you have the option to extend the policy. This option allows you to extend the policy for a further 10 years at any time. This means you keep the benefits of your policy for as long as you pay into it because you can use the extension option many times.
When can I use the option to extend?
You can take the extension option on any anniversary of the start of the policy, so if you have a 4 year old policy you can extend for a further 10 years on the 5th anniversary, the extended plan will mature on the 15th anniversary unless you extend the policy again.
Why should you take the extension?
The extension allows you to benefit from all of the features of a MIP, You will have:
Control over when you receive the money
- You will retain the ability to cash in all or part of the money in your plan at a time which suites you and your financial situation.
- Allow you to continue to benefit from the MIP while you wait for market conditions to improve before cashing in.
Control over how your receive the money
- If you take the extension and continue to pay into the policy, you will have the option to withdraw money from it each year in without it going on your tax return. No income tax or capital gains tax is payable.
Control over investment decisions
- You will be able to take advantage of a wide variety of funds which you can shape to suit your approach to investment.
N.B. The value of units will fluctuate and you may not receive back the full amount of your investment. As with all investments you should seek professional advice if you are in any doubt about what to do next.