Universal Life insurance

jsmethven

hello,
I'm a newbie here, so might have missed detailed info on this topic somewhere. Apologies if I have, but I have looked!
I am not wild about straight life cover and am looking for something more for my money. Whole or Universal appeals to me (I have a couple of paid up policies from my old days in South Africa). I have been looking around for on-line quotes, but have not as yet found any here in the UK? Would I need to go through an IFA?
Would be interested to hear others experiences.
thanks
James

dunstonh

Whole or Universal appeals to me (I have a couple of paid up policies from my old days in South Africa).

Why would these appeal to you?

I have been looking around for on-line quotes, but have not as yet found any here in the UK?

Largely as they fall under investment authorisation and not protection authorisation (which means it is higher regulated and requires a higer licence and cost).

Would I need to go through an IFA?

Typically yes if you want the to be able to access a larger range of illustrations. However, the IFA will have justify a need and most people do not have a whole life need.

jsmethven

thanks.
Re the why - I think this is linked to my origins in SA. Historically, we are used to double digit interest rates and no public funding (from medical care, schooling thru to old age!). So we have always been obsessed with investing for the future. I also struggle a little with having to pay out money for 20yrs with the possibility that I end up with nothing at end of the term (car & household insurance are a little different, having had to use them a number of times...).
I have picked up on the negative view of whole/universal insurance in the UK. Certainly something I have to fully understand in making my choice.
One of the reasons I was also trying to find on-line quotes, was to try and compare regular insurance products with a universal policy (it might not be that simple though...and I'm not an actuary !).
You mention not many people would not have a whole life need. Would you explain more here plse?
thanks

Retired_I.F.A.

Paying for otherwise unafordable chronogenics is the only reason why someone in the UK should buy a whole of life policy. Everything else is a want not a need that can be met with cheaper term assurance.

What do you consider universal life cover, critical illness cover perhaps?

dunstonh

I have picked up on the negative view of whole/universal insurance in the UK. Certainly something I have to fully understand in making my choice.

The decent whole of life plans no longer have any investment element so unless you want an old fashioned, obsolete version of life assurance then there is no point.

Term assurance is fine for life cover and if you want to invest then use ISAs or unit trusts. That is more tax efficient, cheaper and flexible than a whole of life assurance.

You mention not many people would not have a whole life need. Would you explain more here plse?

Most people who need life assurance do so for a particular reason. Debts or family protection being the two. Typically you would only use whole of life nowadays for something that requires you to be covered for the whole of your life. Something that doesnt apply to most people.

jsmethven

Looks like the more feedback I get, the more questions I have. I found the following on MSN Money (American references of course - parallels with South Africa?), but it is basically in line with where I am coming from:
http://articles.moneycentral.msn.com/Insurance/InsureYourLife/TheRagingDebateOverTermvsWholeLife.aspx

The one thing I picked up on is the tax deductible aspect, which I am sure was the case in South Africa as well.

I'll continue digging on this one.

dunstonh

Life assurance premium relief was abolished over 20 years ago in this country and is not tax deductable. life assurance funds suffer a higher internal taxation than unit trusts and ISAs.

You seem determined to use an obsolete product with higher charges and worse taxation. The cheaper and better options have been presented to you on this thread.

jsmethven

Only determination is have all the info to hand. I appreciate all the input.

Your clarification on tax relief is critical. My plan B was to look into something around unit trusts.