It says all currently maturing mortgage endowments are receiving a surplus on top of the mortgage amount covered.
The guarantee is unconditional and LivVic is keen to avoid the negative media coverage received by Standard Life after its similar offer was shown to have caveats attached. LivVic has 6,000 mortgage endowment policyholders. Its guarantee was introduced in February 2000 and is underpinned by the strength of its with-profits fund performance.
A 10-year low-cost endowment taken out in 1995 by a 30-year-old man for a 50,000 mortgage maturing on January 1, 2005 would receive a surplus of 2,285.88. The same policy taken out over 15 years would receive a 14,403.90 surplus.
Group chief executive Malcolm Berryman says: “The strong performance of our with-profits fund has ensured a surplus for all our mortgage endowment policies.”