life insurance plus savings

honey_badger_3

I'm just researching life insurance policies and it's dawned on me that it would be a shame to pay for a fixed term and then not receive a payout at the end - not that I'm wishing death on my partner!:A

We're wanting cover for 40 years to cover the mortgage plus a few extra years. It would be nice to think that if we're alive and kicking by then that we could have a nest egg that matures or if we do pop our clogs our family could benefit.

do such policies exist where you have life cover plus savings

this is all new so apologies if this is an obviously answered question

many thanks

Quentin

The days of the endowment policies are long gone.


Invest separately from your life insurance.

kingstreet

As Quentin, said life cover with a savings element is no longer cost-effective or tax efficient.

Keeping savings and protection separate and putting the difference into an ISA is a much more sensible solution.

dunstonh

I'm just researching life insurance policies and it's dawned on me that it would be a shame to pay for a fixed term and then not receive a payout at the end - not that I'm wishing death on my partner!

Yet you do it with your house insurance, car insurance and virtually every other insurance there is. Do, you pay your gas bill and expect some of that to be invested for you too?

do such policies exist where you have life cover plus savings

Yes they do. However, the last mainstream provider of endowment policies pulled out in 2004. This is because it was no longer cost efficient or tax efficient to have them. Plus, the mortgage endowment failures turned endowment into a bad word.

Nowadays, if you want life cover you pay for it by itself instead of paying for an endowment that would cost around 10 times more per month for the same level of cover. If you want long term savings/investments then you pay towards an ISA or an appropriate vehicle.