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AMP in 6% condition on shortfalls

Mortgage endowment customers facing shortfalls with Pearl, London Life and NPI are the latest to be promised their policies will hit their target subject to certain conditions.

Australian financial services group AMP, owner of the three insurers, says the endowments are guaranteed to meet their targets but only if the funds in which policyholders&#39 money is invested earn an average of 6 per cent a year net.

Policyholders must continue paying the current level of premiums for the remaining policy term to be eligible for the mortgage promise.

AMP has 150,000 mortgage endowment customers, with 80,000 in danger of falling short.

Similar pledges have been made by CGNU and Standard Life which both stipulate funds must earn 6 per cent a year.

AMP UK managing director Tom Fraser says: “We recommend our policyholders take no immediate action as a result of the current endowment review.”

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