Life Insurance or a With Profits Policy?

SteveClarkson_2

Hello,

I was all set to take out a life insurance policy with the cheapest company last night, to cover my sister and I (on seperate policies) for our first house.

I was going to cover £150k each, that would pay off the mortgage completely if either of us were to snuff it. I figured if one of us were to pop our clogs, having the whole mortgage paid off would be very beneficial.

Anyway - I was all set to go with it, when my Dad piped up about his with profits policy - where he pays in each month (and has done since he was my age), and that way, if by some miracle you do 'survive' the policy, they pay out lump sum upon maturity of the policy.

This sounds like a brilliant idea, but everything I have read seems to poo-poo it.

Can anyone help me figure out what is wrong with them, and whether I should get one or just stick with the cheapest policy that does what I want!



Thank you very much indeed.

dunstonh

This sounds like a brilliant idea, but everything I have read seems to poo-poo it.

Its obsolete and no good.

Can anyone help me figure out what is wrong with them,

They are rubbish and you will have a hard job finding one.

Apart from the fact that a £150k sum assured would cost you around £130pm when they did exist in the mainstream, they are awful, awful awful.

jasonking

I absolutely agree with Dunstonh!

SteveClarkson_2

Thank you for your advice - I am now signed up with a basic, cheap as chips (almost) company, mine is at £6.94pm, and sisters is at £6.01 - not sure why she gets it cheaper, I am younger!

Thanks!

jasonking

She is female...less chance of dying than males i'm afraid!

SteveClarkson_2

I dunno, less chance of dying, less chance of crashing the car, less chance of just about everything - and yet still they tell us they have the harder life :rotfl:

jasonking

its hard work being so perfect ;-)