help !!! life insurance

sddk1985

I'm wanting to take out cover that matures when We are older.

I've been advise t take,a endowment policy out but don't want t link t mortgage I just want t pay a monthly sum and then it matures in our later years I wouldn't mind critical illness on it too.

We currently have mortgage term decreasing cover which pays our mortgage off if one of us passes away I think !! Feel out if my depth really as don't know what on about

Thanks in advance

lisyloo

What is it you actually want?

Do you want a lump sum if one of you dies?
A lump sum if you get ill?
An income if you get ill?
Or are you looking for an investment?

kingstreet

If you want a lump sum on death, or on critical illness, change your life cover for decreasing life and critical illness cover. This is the cheapest form of cover and it will pay out on the death, or critical illness, of the first of either of you only.

Then, if you want to save, use a separate savings vehicle, particularly one which is tax efficient, like an ISA.

This would leave you without an income if you have an illness which is not serious enough to claim on the critical illness cover.

Might be a good idea to talk to an independent advisor.

Search here for your area - https://www.unbiased.co.uk

dunstonh

I've been advise t take,a endowment policy

Who on earth gave you that advice? There is no justification for virtually anyone to have an endowment nowadays. Alternative tax wrappers exist that can achieve the same result but more tax efficient.

I just want t pay a monthly sum and then it matures in our later years I wouldn't mind critical illness on it too.

Do you want investments or life assurance? Can you afford to do both to the same level?

lisyloo

This would leave you without an income if you have an illness which is not serious enough to claim on the critical illness cover.

For income protection you need PHI which does provide an actual income if you can't work.
Critical illness supplies a lump sum for certain illnesses. It does not provide an income (beyond what you could take from the lump sum).
A lump sum is noce for - paying off debt, adapting a home, paying for care, treatment, or a last holiday, but it's not enough to provide a long term income. Furthermore CI only coevr certain illnesses whereas PHI covers the inability to work.

You need to seperate out what it is you actually want.
income? lump sum? death cover? illness cover? savings?

Generally I'd say you won't necessarily get the best deal by trying to combine these.

ACG

You could also start paying into a pension if your not already.
You can then take 25% of that tax free when you retire (around 60ish) and you will also have an income on top of that.

So many different options , might be worth having a word with a financial advisor. If your out of your depth like you say then they can discuss all of the different options with you.