Foundation Life windup plan finally ready for a vote after 7 years

Foundation Life’s shareholders say they “share our policyholders’ frustration” at the time it has taken to finalise a plan to wind up the near $500 million business while giving policyholders choices about whether to take cash, swap for new policies with greater benefits or a combination.

Policyholders resident in New Zealand can chose to swap their policy to Chubb Life with no further premiums required and that will provide 105% of their current policy’s death cover or they can take cash worth 105% or more of their existing policy’s surrender value or a combination of the two options.

Policyholders resident offshore, about 7% of total policyholders, can only opt for cash.

Foundation Life, formerly Tower Life, bought the legacy Tower life business in 2014 for $36 million.