Could I have some advice please

jackie_w

Hello everyone,

Hubbie and I are about to move into a new home in 4 weeks, and our mortgage advisor told us we should arrange life insurance (Im afraid we dont have any just now). Anyway, Dh has said he would rather just take out an endowment because, we will get something back at the end of the term!!!

Our mortgage is a repayment mortgage.

What do you think we should do? Should we take out life insurance, or should we go for an endowment.

Could someone also tell me the differences between them.


Thank you


Jackie

dunstonh

You should certainly not take out an endowment. In fact you would be hard pushed to find any provider that would do it and no financial adviser would.

If you could do an endowment, it would be around 7-10 times the cost of the life assurance premium each month. It would be taxable making it less efficient than a stocks and shares ISA. It would have higher charges than a stocks and shares ISA as well as being far less flexible. There is also no financial need for an endowment.

Endowments went obsolete many many years ago.

jackie_w

Hi There,

Thanks for your reply. I thought that, and I told my hubbie so, but, he says he grudges paying money every month, when he wont get anything back

Anyway, Im sure the FA will put him right when we go to see him.

Once again, thank you.


Jackie

Andy_L

if one of you can afford the mortgage on their own then there's no need for life insurance.

Otherwise your husband gets back the piece of mind that the survivor won't be made homeless on top of dealing with the death of the other.

dunstonh

Thanks for your reply. I thought that, and I told my hubbie so, but, he says he grudges paying money every month, when he wont get anything back

He will if either of you dies.

There are a lot of things we have to pay for but dont see a material value. This is just one of them.