Insurance that pays out if you don't die????

claire1142

Do these policies still exist?

My parents opened one of these through CIS in my name and it matured a few years ago providing a payout.

I also know friends and family that have had the same type of policies which have matured recently.

I recently went to look for similar policies but I've been unable to do so.

Does anyone know if these policies still exist and if so who provides them?

Uncle_Cuddles

Essentially, an endowment policy. This type of policy pays out a hell of a lot less than a normal life policy if the insured person does die. I took one out a few years ago - £20 per month for 20 years, insuring my wife for £20K. It will pay out a guaranteed £5K (or more) after 20 years. I have another policy insuring both myself and my wife for £150K which costs about the same, but has no payout at the end.

fairenoughclough

I think this is a life Assurance policy.


Insurance pays out in the event of a disaster.

Assurance pays out in the event of a disaster or at the end of the term if no disaster.

An endowment policy is a form of life assurance.

I hope that's right, please feel free to correct me if I'm wrong.

Paul_Varjak

I think you can only be referring to an endowment policy. I took out one when I was nineteen. It will mature when I am sixy-five (or earlier if I die). I have been paying £4.16p/month. Hope it will pay about £35,000 when I reach 65 which will, at least, top-up a meagre pension.

When I started my policy, even non-taxpayers got tax relief. I don't think that is the case anymore.

dunstonh

LAPR was removed around 1985 for new policies. Existing policies held on to that benefit.

If you looked at the same age and term, an endomwment would provider approx 10% of the life cover that would be available on the same premium for a term assurance.