Our regulator requires that plan update letters are colour-coded red, amber or green to indicate whether, based on our current assumptions of future investment returns, your plan is likely to meet the target amount, which is typically your original mortgage amount.
If we send you a 'red' letter this means that based on our assumptions there is a high risk that your plan will not reach the target amount at the end of the endowment term.
If we send you an 'amber' letter this means that based on our assumptions your plan is at significant risk of not meeting the target amount at the end of the endowment term.
If we send you a 'green' letter this means that based on our assumptions your plan is currently on track to meet the target amount at the end of the endowment term.
If your plan matures in the next few years, the current economic and financial conditions may have an impact on your investment returns. It is impossible to be certain about future investment growth. The final value of your endowment plan could be lower or higher than shown in your re-projection update letter.
It is important that you check each plan update letter, even if the plan has so far been on track. This is especially important if your plan is close to maturity. You should continue checking your projected value until the end of your plan term.
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