Dividend paying life insurance?

aristote33

Is there such a financial product available from a financial institution in the UK?

Thanks.

dunstonh

dividends come from shares or funds. You can get life assurance products with those sorts of distributions but typically for investment purposes using the life assurance tax wrapper.

Its a bit of strange request. Why do you want income distributions from your life assurance?

aristote33

Just trying to understand what's behind the idea of autonomous banking, which, according to material available online, involves setting up a dividend-paying life insurance.

But as these sources are US-based, the question was: would that set up be possible in the UK too, or is there nothing like that possible in the UK if dividend-paying life insurance does not exist in the UK (?), therefore making the whole idea of autonomous banking unattainable in the UK.

stephenni1971

Think you are on a highway to nowhere with this one...

Why does the concept of autonomous banking appeal to you so much?

dunstonh

ahhh, you are referring to a US product. There was a similar product here in the past. They were called endowments. Not exactly the same but we all know what happened to those. There are still some unit linked/with profits whole of life plans but you will find the guaranteed pure life plans offer far better value.

If you want to protect a life then use pure life assurance. If you want to invest then use pure investments. Putting the two together usually meant higher charges and lower quality.

The UK system is thankfully very different to the US one and we shouldnt be aiming for what they have.