Qualifying policyholders at NPI are set to receive a fixed cash payment of £300 each if they vote for demutualisation and the AMP takeover.
The fixed sum is compensation for the loss of voting rights.
Qualifying members will also receive a variable cash payment based on size and type of policy held and the length of time it has been in force.
The second payment is to recompence members for loss of rights to a share in distribution of any surplus when NPI is wound up.
The vote takes place on May 19, 1999 and conversion is expected to be completed by the end of the year.