Wesleyan Assurance Society is extending its guarantee on mortgage end-
owment policies to cover all plans maturing before January 1, 2007.
The recent furore surrounding maturity values of mortgage endowment
policies not covering the full amount of the original loan has prompted
life offices to write to policyholders and compare the projected maturity
value of the policy with the original loan.
Product providers are having to come up with a possible course of action
where there is a shortfall.
Wesleyan says it is confident about the future maturity values of
endowment policies and has extended its guarantee as part of its mutual
It is offering policy holders a guarantee that the maturity level of their
policies will repay the amount of their original loan with no increase in
Wesleyan says the initiative proves that policyholders are benefiting from
its mutual status.
It has paid out more than £9m in extra bonus payments to policyholders
The company hopes the bonuses and the exten ded guarantee will att ract
Managing director Jim MacDonald says: “This initiative is yet another
demonstration of Wesleyan's ability to be inn ovative and provide
reassurance and good value to our customers. We trust that activities such
as this will encourage new customers.”