Standard Life endowment policyholders received bad news today with the announcement that endowments maturing from 2006 would not be covered by the Company’s “mortgage promise”. In 2000 Standard Life had said that it would guarantee its endowment policies provided it met investment targets.
The news is expected to affect up to 600,000 investors, and is a result of continuing poor conditions in the investment market. Since 2000 Standard Life has put £393 million aside to cover endowment
shortfalls but in a press release today “The Board has now reached the decision that it would be inappropriate to continue making further provisions as long as capital growth conditions continue not to be met”. – Standard Life. The “mortgage promise” will still apply to endowment policies maturing before 31st December 2005. Polices maturing after this time will still be eligible to have some of the shortfall covered, but how much will depend on the policy.
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