Endowment life policies.. Help please

luckyseven_3

Hi,
would like to buy a endowment life cover policy. Could anyone suggest any resonable offers around. It looks they are few and far between. Actually, I couldn't find any!!

dunstonh

Why on earth would you want to buy an endowment?

Obsolete charging structure, only tax efficient for higher rate taxpayers and only a handful of providers left that still offer it.

luckyseven_3

Well, let me explain. But bare with me, I am a amatuer money saver.
1. If I buy an endowment policy, at least at the end of the term (say in 20 years) I will get my money back. If I go for a normal life assaurence policy, then I won't get any, of course unless I die.
2. i am a higher rate tax payer, but hey, how will it affect this?.. so you see I am b****y ametuer.

dunstonh

How much life cover do you want?

If you are looking at a 20 year term and a typical sum assured of £200k (probably more if you are a higher rate taxpayer with a family) then your monthly premium on an endowment policy would be about £300pm. On a term assurance it would be cover to £15-£20pm.

So, rather than pay high charges and invest in a inefficient tax wrapper, put £20pm into the life assurance and £280pm into a stocks and shares ISA. Over the 20 year period that option will beat the endowment.

luckyseven_3

That' great!. Thanks a lot.
Another question, I want to get life assuarence for both myself and my wife. I am wondering what other moneysavers think, would we go for a joint policy or shoud we get two seperate policies?.
many thanks for any advice.