life insurance

gibbi88_2

Hi im looking at starting a life insurance policy but i want a cash in value one my dad has 5 policies which he took out around 25 years ago and he used to do abit of life assurance and told me the best ones are the cash in whole life ones but as he doesn't do that anymore and we cant find a company who does that , does anyone know of a company who does??

Thanks Alot
Sam

stephenni1971

gibbi88 wrote: »

Hi im looking at starting a life insurance policy but i want a cash in value one my dad has 5 policies which he took out around 25 years ago and he used to do abit of life assurance and told me the best ones are the cash in whole life ones but as he doesn't do that anymore and we cant find a company who does that , does anyone know of a company who does??

Thanks Alot
Sam

Your Dads wrong! You can't find one of these policies because they were found to be poor value.

Get life insurance and if you want to save some money open a bank account or ISA.

kingstreet

Combining protection and savings is neither cost nor tax efficient. Such plans are now significantly outdated.

Much of your premium is eaten up in higher charges and cover is often only guaranteed for a limited period.

Consider a product for each need. A term assurance for protection and an ISA for savings, for example.

gibbi88_2

stephenni1971 wrote: »

Your Dads wrong! You can't find one of these policies because they were found to be poor value.

Get life insurance and if you want to save some money open a bank account or ISA.

Thanks for the reply but i disagree as my dad has made alot of money in 25 years on each of the policies he had , but suppose everyone can have an opinion

weighty1_2

I've had numerous clients over the years who have had unit linked whole of life policies and of them all only 1 client had built up any value in the plan. All the others had come to me to seek alternative options because the premiums had gone through the roof at a review point and it was no longer sustainable.

You can still get these policies via an IFA, however, I'd be surprised if any would arrange one of these plans on anything but an execution only basis because there are likely to be far better options available such as a whole of life plan with guaranteed premiums and an isa, or as already suggested a term assurance plan and isa.

I think your dad is one of the lucky ones if he has made money. Just think about it, if they are so good why do very few companies do them now? They should be flying off the shelves if they are that great.

gibbi88_2

Yes i see what your saying i think because my dad used to do abit of it and his uncle was a millionaire through writing wills and life assurance they probably knew the right ones to choose, thanks again i may look into an isa.

dunstonh

but i want a cash in value one

The last one that was issued in the mainstream was 2003. Why do you want an endowment?

he used to do abit of life assurance and told me the best ones are the cash in whole life ones

Your dad is woefully out of date I'm afraid. That is a problem when you leave an industry. Things move on.

Thanks for the reply but i disagree as my dad has made alot of money in 25 years on each of the policies he had , but suppose everyone can have an opinion

Your dad took them out when there were few alternatives. Today, there are much better alternatives and that is why most companies no longer offer them.

S&S ISA plus pure life assurance would trump a whole of life assurance plan.

gibbi88_2

well id say they used to be a good investment as he has paid £180 a year for 25 years and now his cash in value is worth £20,000

stephenni1971

gibbi88 wrote: »

well id say they used to be a good investment as he has paid £180 a year for 25 years and now his cash in value is worth £20,000

Wow! Thats 10% growth per annum over 25 years. Absolutely incredible.

Is your dad's uncle called Warren Buffet by any chance?