Dividend Paying Whole life Insurance

Brett_Briner

I recently signed up with a new life insurance provider. They boast that they can "beat the pants off my old insurance policy." They have quite a few benefits I like though.
There is one called five layered protection. It means that their policy has the four "layers of security other policies have. Namely,
1.Life Insurance Companies are audited annually by State Commissioner
2.State insurance Commissioners take over failing companies
3.Life Insurances Companies are audited by insurance raters
4.Each State has an insurance guaranty fund
their fifth layer is this...
5.They use companies that are owned by policy holders

You can also borrow from the amount set aside without penalties or charges.

I think it's an overall good program. It fits my own life at least. I might even be inclined to agree with the company that it's "The Best Way To Invest Money."

dunstonh

None of which applies to UK residents.

The use of life assurance for investments is only really suitable for around 20% of the population due to the taxation methods on life funds compared to unwrapped funds. This is why life fund products are mostly on decline. Also, as for performance, the same funds available unwrapped or wrapped in ISAs or pensions are available for life funds. So, any claims on performance would just be totally false. If you put say Inv Perp High income fund in an investment bond, an ISA,, a pension or leave it unwrapped in unit trust form then the performance will be idnentical. It will just be the taxation and charges and maturity process that is different.

Thankfully, regulation of investment backed products is higher in the UK than the US and you wouldnt be able to get away with making such claims over here.