Life Insurance Question

gribbo2001

Hey

I'm looking into getting life insurance and was wondering how it works. Do they pay up after 20 years whatever happens or do they only pay you back what you pay in? The best price ive found so far is legal and general.

Can anybody help?

dunstonh

Same as household and car insurance. They pay out on a successful claim only.

The type of life assurance that pays out a value is called an endowment policy. They are more or less obsolete now.

gribbo2001

thanks mate - u know where i can get an endowment?

dunstonh

Hardly anywhere now. You wouldnt want one either. They are an obsolete product which is no longer suitable.

If you are aged 25 and want a 20 year policy, a pension term assurance for 100k would cost you around £5pm. An endowment on the same terms would cover around £120pm.

If you want something like that, then stick £5 in for the life cover and set a regular savings ISA for the rest.