Endowment policies

andywade58

I am trying to find out if there is anything that replaced endowment life insurance policies. I have a joint life policy for 100k but it is term insurance so I am throwing this money down a black hole every month. I know that endowments were ditched due to bad returns but some return would be better than none. Any ideas anyone.

dunstonh

I am trying to find out if there is anything that replaced endowment life insurance policies.

Stocks and shares ISAs killed off endowments.

I have a joint life policy for 100k but it is term insurance so I am throwing this money down a black hole every month

Like car insurance or household insurance. That is why term assurance is so cheap.

I know that endowments were ditched due to bad returns but some return would be better than none.

They were not ditched due to bad returns. They were ditched as stocks and shares ISAs were more tax efficient and more flexible.

Any ideas anyone.

Broadly speaking, and endowment would be around 10 times more expensive than a decreasing term assurance, So, multiply what you are paying into the term assurance by 9 and pay that amount into a stocks and shares ISA and you have the same as an endowment but more tax efficient and cheaper.

andywade58

I don't agree that term assurance is cheap. I'm having to pay 140 per month for 100k on 2 lives.

Thrugelmir

andywade58 wrote: »

I don't agree that term assurance is cheap. I'm having to pay 140 per month for 100k on 2 lives.

Is that comment made with hindsight now that you've reached the grand old age of 57.

I've never claimed on my house building insurance but every year I renew the policy.

dunstonh

I don't agree that term assurance is cheap. I'm having to pay 140 per month for 100k on 2 lives.

It is cheap. An endowment policy would be costing you around £1400 for the same sum assured. £140 is cheaper than the £1400 that you want to pay instead