Life Insurance / Investment

Sarries1968

Dear All

I need to arrange a small life insurance policy (£20-£30k over 16 years) for myself and my wife as a top up for our existing arrangements.

I am no expert (hence my reason for being on here) however I seem to remember once being told about a policy that would combine insurance with investment i.e. would payout a fixed some in the event of death of one or the other party but would also pay out something at the end of the policy.

Can anyone help be by recommending a product / place to look?

Thanks

Steve

Aretnap

That sort of life assurance policy was common in the past, but I don't think they're seen as a mainstream option anymore. Compared with modern investment products, like ISA and personal pensions, they were not tax efficient and the fee structure was often opaque. The monthly payments would also be high compared with a simple, term life insurance policy (which only pays out if you die within 16 years).

You would likely do better by getting a term policy, and paying something monthly into an investment ISA over the next 16 years. If you try to combine the insurance and investment elements into a single product then you probably get one that doesn't do either particularly well.

dunstonh

however I seem to remember once being told about a policy that would combine insurance with investment i.e. would payout a fixed some in the event of death of one or the other party but would also pay out something at the end of the policy.

They used to be called endowments and the last mainstream provider of endowments pulled out in 2004. ISAs killed them off as an ISA was more tax efficient.