Personal Investment Plan

Find out more about your Personal Investment Plan (PIP), from how it works and your investment options, through to making a withdrawal.

Your Personal Investment Plan

Your Personal Investment Plan (PIP) is a life assurance investment bond and a lump sum investment that aims to deliver capital growth and/or an income over the medium to long term (i.e. at least five to ten years). You chose where to invest your money by buying units in one or more funds that matched your own needs and attitude to risk. The value of your PIP can fall and you might not get back the amount you invested.

To help you understand your PIP we’ve summarised the plan's key elements for you below.

Who is your PIP held with?

Halifax

Halifax

Halifax PIP

  • You can invest in a PIP for as long as you want – there’s no set end date
  • There are no initial charges if you top up your PIP
  • You can currently move funds free of charge
  • You may receive loyalty bonuses once you’ve invested with us for a certain number of years
  • Once the amount you’ve paid into your PIP reaches a set amount, there will be a reduction in Yearly Management Charges
  • You can place your plan in trust
  • You can withdraw up to 5% of your initial investment every plan year, for a maximum of 20 years, without incurring an immediate tax charge
  • You can take withdrawals from your plan at any time – there may be tax implications. If you’re thinking about making a withdrawal from your plan please review all of your options, and their tax implications, before making a decision.

What is a fund?

  • A fund is a way of investing that allows a number of people to pool their money together in order to invest in a range of different assets
  • Funds are often grouped into categories determined by the aims, risks or by where in the world the underlying shares or bonds are from

Your options

  • A variety of funds are available for cautious to adventurous investors
  • You can make additional payments into, or move between, funds at any time
  • We recommend that you review the funds your PIP is invested in from time to time, to make sure that they still meet your investment needs

Our fund information page has a list of available funds for you to invest in.

 

  • You can choose from a variety of funds – each one has its own yearly charge
  • Based on your investment value you may have reductions on your plan’s yearly charge
  • Any top-ups made to your plan after October 2012 may also qualify for a yearly charge reduction of up to 0.5%
  • Once you’ve held your plan for a number of years you may receive a loyalty bonus

Our fund information page has a list of available funds and a summary of charges and reductions.

  • You can top up your plan at any time with a minimum additional payment of £250
  • Any top ups you make to your plan may receive a yearly management charge reduction of up to 0.5%
  • You can invest as much as you like in your PIP

Making an additional payment into your PIP is simple. You can either call us on 0345 030 6244 from 8am to 6pm Monday to Friday and 9am to 1pm on Saturday (please have your plan number available), or complete and return the Additional Investments form.

The flexibility of your PIP is one of its key benefits; you can make additional payments, take tax-efficient withdrawals, and move funds to suit your needs. This flexibility means your plan should continue to meet your needs over many years.

However it’s important to consider how these flexible options can affect the value of your PIP over the long term.

Withdrawals

You can take tax deferred withdrawals of up to 5% each year. However if your withdrawals are greater than the amount your investment has grown each year, the value of your PIP will decrease over time. If you’re thinking about making a withdrawal from your plan please review all of your options, and their tax implications, before making a decision.

Charges

All providers charge for managing investment products, and it’s important to check that the charges are not greater than your investment growth each year otherwise the value of your PIP will decrease over time. Find out more about the charges that can apply to a PIP.

Fund selection

Your fund choice, charges and performance will affect the value of your PIP. It’s important to review your funds regularly to ensure they are performing in line with your expectations. You can find out more about the investment options available for your PIP.

Additional payments

Any additional payments into your PIP will increase its value at that time. Please remember the value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.

What might I get back?

The amount you get back from your PIP isn’t guaranteed and will depend on:

You may get back less than you invested.

Remember that the effect of inflation will reduce the future buying power of what you get back.

Every year we send you a statement showing the number of units in your PIP.

You can get details of the unit prices by visiting our funds page. We update our prices each working day.

You can also ask for the value of your PIP at any time by giving us a call or writing to us.

If your life is the only one covered, we’ll pay out the benefits of the plan to your estate. If you placed your plan under trust, the payment will be made to the trustees.

Sometimes two people own the plan and both lives are covered – in this case a payment will be made based on how the plan was set up. So the payment will be made either on the death of the first named person, or on the death of the second named person. If you’re the owner of the plan but not the person whose life is covered, and you die, the plan will continue and ownership will pass to the person entitled to it.

For plans started on or after 25th January 2010

If you die, or where there are two lives covered, the first or last person dies (depending on how the plan was set up) as a direct result of an accident, we’ll increase the benefit we pay to 110% of the value of the plan, plus any loyalty bonuses due. You can find more information on the definition of accidental death, including the exclusions that apply, in your plan documents.

Contact us by phone or in writing

To find out the value of your plan, top up your investments, move funds, or make a withdrawal, call us on 0345 030 6244.

Our lines are open from 8am to 6pm Monday to Friday and 9am to 1pm on Saturday.

You can also contact us in writing at:

Scottish Widows
PO Box 30000
15 Dalkeith Road
Edinburgh EH16 9AT

To allow us to help you quickly, please include:

  • your account, plan or policy number
  • your full name
  • your address
  • how you would like us to reply and your contact details (e.g. telephone number or email address)
  • your signature is your consent to follow your instruction.

Once we have received your letter, we aim to respond to your request within five working days. We may need to get in touch with you for additional information before completing your request. To avoid any delays, please include a daytime contact number or email address.

Scottish Widows

Scottish Widows

Scottish Widows PIP

  • You can invest in a PIP for as long as you want – there’s no set end date
  • There are no initial charges if you top up your PIP
  • You can currently move funds free of charge
  • You may receive loyalty bonuses once you’ve invested with us for a set number of years
  • Once the amount you’ve paid into your PIP reaches a set amount there will be a reduction in Yearly Management Charges
  • You can place your plan in trust
  • You can withdraw up to 5% of your initial investment every plan year, for a maximum of 20 years, without incurring an immediate tax charge
  • You can take withdrawals from your plan at any time – there may be tax implications. If you’re thinking about making a withdrawal from your plan please review all of your options, and their tax implications, before making a decision.

What is a fund?

  • A fund is a way of investing that allows a number of people to pool their money together in order to invest in a range of different assets
  • Funds are often grouped into categories determined by the aims, risks or by where in the world the underlying stocks or bonds are from

Your options

  • We have four funds available for cautious to adventurous investors
  • You can make additional payments into, or move between, funds at any time
  • We recommend that you review the funds your PIP is invested in from time to time to make sure that they still meet your investment needs

Our fund information page has a list of available funds for you to invest in.

 

  • You have four funds to choose from – each one has its own yearly charge
  • Based on your investment value you may have reductions on your plan’s yearly charge
  • Any top-ups made to your plan after October 2012 may also qualify for a yearly charge reduction of up to 0.5%
  • On the 5th, 10th and 15th year anniversaries of your plan, you may receive a loyalty bonus

Our fund information page has a list of available funds and a summary of charges and reductions.

  • You can top up your plan at any time with a minimum additional payment of £250
  • Any top ups you make to your plan may receive a yearly management charge reduction of up to 0.5%
  • You can invest as much as you like in your PIP

Making an additional payment into your PIP is simple. You can either call us on 0800 141 418 from 8am to 6pm Monday to Friday and 9am to 12.30pm on Saturday (please have your plan number available) or complete and return the Additional Investments form.

The flexibility of your PIP is one of its key benefits; you can make additional payments, take tax-efficient withdrawals, and move funds to suit your needs. This flexibility means your plan should continue to meet your needs over many years.

However it’s important to consider how these flexible options can affect the value of your PIP over the long term.

Withdrawals

You can take tax deferred withdrawals of up to 5% each year. However if your withdrawals are greater than the amount your investment has grown each year, the value of your PIP will decrease over time. If you’re thinking about making a withdrawal from your plan please review all of your options, and their tax implications, before making a decision.

Charges

All providers charge for managing investment products, and it’s important to check that the charges are not greater than your investment growth each year otherwise the value of your PIP will decrease over time. Find out more about the charges that can apply to a PIP.

Fund selection

Your fund choice, charges and performance will affect the value of your PIP. It’s important to review your funds regularly to ensure they are performing in line with your expectations. Find out more about the investment options available for your PIP.

Additional payments

Any additional payments into your PIP will increase its value at that time. Please remember the value of your PIP can go up and down as a result of stock market and currency movements, and you may get back less than you invested.

What might I get back?

The amount you get back from your PIP isn’t guaranteed and will depend on:

You may get back less than you invested.

Remember that the effect of inflation will reduce the future buying power of what you get back.

Every year we send you a statement showing the number of units in your PIP.

You can get details of the unit prices by visiting our funds page. We update our fund prices each working day.

You can also ask for the value of your PIP at any time by giving us a call or writing to us.

If your life is the only one covered, we’ll pay out the benefits of the plan to your estate. If you placed your plan under trust, the payment will be made to the trustees.

Sometimes two people own the plan and both lives are covered – in this case a payment will be made based on how the plan was set up. So the payment will be made either on the death of the first named person, or on the death of the second named person. If you are the owner of the plan but not the person whose life is covered, and you die, the plan will continue and ownership will pass to the person entitled to it.

Accidental death benefit

If you die, or where there are two lives covered, the first or last person dies (depending on how the plan was set up) as a direct result of an accident, we’ll increase the benefit we pay to 110% of the value of the plan, plus any loyalty bonuses due. You can find more information on the definition of accidental death, including the exclusions that apply, in your plan documents.

Contact us by phone or in writing

To find out the value of your plan, top up your investments, move funds, or make a withdrawal, call us on 0800 141 418.

Our lines are open from 8am to 6pm Monday to Friday and from 9am to 12.30pm on Saturday.

You can also contact us in writing at:

Scottish Widows
PO Box 28116
15 Dalkeith Road
Edinburgh EH16 5BU

To allow us to help you quickly, please include:

  • your account, plan or policy number
  • your full name
  • your address
  • how you would like us to reply and your contact details (e.g. telephone number or email address)
  • your signature is your consent to follow your instruction.

Once we have received your letter, we aim to respond within five working days. We may need to get in touch with you for additional information. To avoid any delays, please include a daytime contact number or email address.