I could not agree more with Len Warwick's article in Money Marketing on maturing endowment policies.
There are, however, two points that about which we as an industry need to educate our journalistic friends.
No endowment policy will produce a shortfall at matur-ity. That is a fact. I am old enough to remember non-profit endowments and even these guaranteed to pay off the loan.
What we are talking about is low-cost endowments. This could cause the problems and there are many reasons for this, not least the unrealistic projec-tions, expensive life cover and high charges.
The other point to make is that not all low-cost endowments are with-profits contracts. It would be interesting to know what the ratio of with-profits to unit-linked policies is and how the maturities compare, assuming that any of them actually run to maturity, but that is another story.
Moorgate House,Milton Keynes