Type: Low cost endowment.
Addition: Mortgage interest cover – pays mortgage interest in the event of accident or sickness. Mortgage Payment Proection Insurance – pays mortgage interest for up to 12 months in the even of accident, sickness or unemployment. Introduction of premium holiday facility. Introduction of Accelerator Option which allows policyholder to increase premiums by up to 20 per cent every five years and Step Down Option which allows policyholders to pay an initial premium that is higher than necessary to meet targets and then to reduce it by between 2.5 per cent and 10 per cent for up to five years. Policy fee reduced from £2.40 a month to £1.70. Standard commission terms changed from initial commission of 130 per cent to 140 per cent and renewal from 2.5 per cent to 2 per cent.