Savings with Death payout

madcow_57

I am looking to find an insurance that will pay out on death or payout after a set number of years or what ever comes 1st.
I used to have one years ago and forgot what its called, knowing my luck they don't do one any more.
Thanks for reading.

magpiecottage

Sounds like an endowment.

At one time they were popular because there was partial tax relief on the premiums. However, nowadays taking a term assurance policy for the life cover and a separate investment in an ISA is more tax efficient and more flexible.

Spending a particular monthly amount on an endowment would probably leave you with less cash at the end than taking out a term assurance and putting the difference in cost into an ISA - though there can be no certainty at outset.

lisyloo

You are better off getting an insurance product for your insurance needs and a savings product for your savings needs.
All evidence to date (and I'm talking millions of policies) is that when you combine, you compromise.
Get them seperately.

madcow_57

Arn't endowments for people with a Mortgage?

lisyloo

They were taken in the past by people with a mortgage as they provided both an investment and a life assurance element, but I don't think it was obligatory to have a mortgage.
They weren't flexible so if (like my parents) you got divorced you got shafted.
About 3 million people found they weren't a good idea.

If you want savings as opposed to investments then you can get that on the high st without any charges.
Get the highest paying cash ISA you can find, then get some term assurance seperately.