Life Insurance

babyharry07

Does anyone know of a life insurance that pays out the premuim at the end?

Look forward to all answers

payless

life insurance that pays out the premuim at the end?

the the "end" is death- then yes most of them!

If you mean a policy that pays out some form of lump sum once the life cover ends - then yes there are policies with this feature, although often better value can be found by keeping the "savings/ investment" element seperate to "protection"

http://www.moneymadeclear.org.uk/products/insurance/life.html

Cautious_Investor_3

Hi

It's called an Endowment, and for many many good reasons they are not exactly popular!

We'd all like an insurance policy that pays us our premiums back if we are still alive and kicking and have not claimed, however it's not possible. Even with an Endowment policy a percentage of the premium went to pay for the life cover, the balance was invested, so at maturity you have an illusion that the whole premium provided a return for you.

However, returns on Endowments have been poor, life assurance funds are subject to tax (although the final maturity amount generally is not) and if you need to claim on the life assurance then the investment element is often lost.

You are much better to set yourself a monthly budget, out of this buy the life insurance that you need and use the rest to fund savings, this approach has a number of benefits:

1. You can buy your life cover from the cheapest provider
2. You can invest with the most appropriate fund manager
3. You can use an ISA for your savings meaning the returns will be tax free
4. If you claim on the life assurance your savings will still be available to your estate
5. If you need access to your savings you can do so and leave the life cover in place

All in all, separate the two needs, go for the best provider for each need and you will get a far better solution to the problem!

Hope this helps.

The Cautious Investor

dunstonh

It's called an Endowment, and for many many good reasons they are not exactly popular!

Too right. However, I dont know if you were aware but recently Scottish Widows brought one back. I havent looked at the details close up but "in theory" if it was still available as a tax wrapper but run like ISAs and platform based pensions then it could actually work. Problem is the minute you mention the name "endowment", it will put people off.

S&S ISA and Term assurance is still the best way for most.

payless

whilst not saying they are any better value !!! its not just endowments that might fit the OP's question...

Whole of Life ( they have their place , but often used incorrectly in the 80/ 90's )

Pure term , but with a refund of % of premiums - often just arranged by charging more in the first place, and only paying nteh refund if full term met.

lisyloo

If you want savings get savings.
If you want insurance get that.

You are unlikely to find the best of both worlds with one provider, so get them seperately.

Cautious_Investor_3

lisyloo wrote: »

If you want savings get savings.
If you want insurance get that.

You are unlikely to find the best of both worlds with one provider, so get them seperately.

Now why couldn't I have put it that simply!

sophievenusdoom

Some insurers do provide maximum investment plans which also offer a life cover facility...