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Mortage Life Assurance
helpassured
Posts: 1 Newbie
Is it possible for a married couple to invest in a Mortgage Life Assurance, and if both live longer than the set years, receive a nest egg? My Son and Daughter-in-Law have agreed to invest £80 a month for the next 22 years but if, hopefully, they are both still alive at the end of those 22 years they don't receive anything. Is there a better deal?
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Comments
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You're talking about a protection plan, not a savings vehicle.
These days, you are better off using protection plans for protection and savings plans for saving, as the old hybrids were a mishmash of high charges, poor returns and poor tax efficiency.
If the cost of the protection is £80 a month, only they can know if the level/type of cover suits them and if they want to save, they either put money over and above that into an ISA, or they have less cover and use some of that, saved into an ISA instead.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
£80 a month for a mortgage life policy is quite a lot.
As Kingstreet says doing the 2 in 1 isnt beneficial.
For £80 a month you can probably get a life policy and put the rest in an ISA/Stocks & Shares/Savings account etc etc.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
You dont invest in life assurance. You pay the premiums and if you die within the term it pays out. If you dont die and get to the end date then it ends without payment. Just like car insurance or house insurance.
The product you describe is an endowment policy. The last mainsteam provider to pull out of endowments was in 2003. They became obsolete and inefficient for tax (bar a small number of cases). The cost of endowments was typically 4x to 10x that of a term assurance policy.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
£80 a month for a mortgage life policy is quite a lot.
As Kingstreet says doing the 2 in 1 isnt beneficial.
For £80 a month you can probably get a life policy and put the rest in an ISA/Stocks & Shares/Savings account etc etc.
For £80 pm I would guess there is some CIC in there tooI am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.0 -
Theyeve said they have that to invest - which makes me think they havnt taken any out at all yet?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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I read it as £80 available budget and not currently spending £80. Hopefully the OP can confirm.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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