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Standard ditching endowment savings plan

Standard Life is scrapping its long-ailing endowment savings plan as part of an ongoing rationalisation of its product range.

The company stopped processing quotes for the product last week and will not take new business after June 17. It says it will not allow top-ups to existing plans after this date. The move does not affect its mortgage endowment plans.

Towry Law product research manager Simon Farrant says the endowment insurance product was Standard Life&#39s small endowment carpetbagger&#39s product of choice and that the move brings the company into line with competitors, which have already withdrawn such offerings.

Standard could not comment on the volume of customers affected. It says while there are a lot of clients on the books, numbers have declined rapidly in the past few years.

The plan is non-compliant with the ABI&#39s Raising Standards accreditation initiative, which it is striving for.

Spokeswoman Patricia Corrigan says: “Demand for this product has fallen to the point where it does not correspond with supply. This was one of our products that simply was not compliant.”

Farrant says: ” It comes as no surprise but this should have happened long ago.”

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