Life Insurance/Assurance??

Jo4

Is there a policy which pays out if you die in a certain amount of years and if you don't it still pays out an amount anyway? Hubby and I want our lives covered but although I have read Martins article I am totally confused, anyone give us any advice? I am 28, he is 40 and we are both non smokers, what policy do we need?

dunstonh

Is there a policy which pays out if you die in a certain amount of years and if you don't it still pays out an amount anyway?

Yes. Endowment policies. However, ignoring the fact that its difficult to get an endowment policy nowadays, the premium on an endowment policy would be 5-10 times more than a level term assurance and even more than a pension term assurance (which will apply again from April 2006).

If you want advice, you should seek out an IFA or whole of market protection advisor (do not get advice from tield or multi-tied agents/advisors).

Jo4

dunstonh wrote:

Yes. Endowment policies. However, ignoring the fact that its difficult to get an endowment policy nowadays, the premium on an endowment policy would be 5-10 times more than a level term assurance and even more than a pension term assurance (which will apply again from April 2006).

If you want advice, you should seek out an IFA or whole of market protection advisor (do not get advice from tield or multi-tied agents/advisors).

THANKS for responding! With endownment policies performing so badly these days would it be wise to take out an endownment policy?

Please speak in very simple terms as I have no understanding of life insurance and assurance policies. I know a little about endownment policies as my hubby has one which is linked to the mortgage and it seems like he is going to get paid less than he put in!! :eek:

Would CAB be able to advise me?

dunstonh

With endownment policies performing so badly these days would it be wise to take out an endownment policy?

Endowments dont perform badly. Its where you investment the money that performs well/bad. However, thats another thread discussion and as you wont be doing an endowment, i wouldnt worry about it.

There are a number of types of term assurance. Different ones are used for different purposes. Level Term Assurance is the most common one at this time although that is likely to change in the next 12 months.

In very simple terms, you pay a premium, like household insurance and if you die in term of the policy, it will pay out a lump sum to your estate. You can use trusts or insure on life of another or joint depending on your requirements.

Would CAB be able to advise me?

No. You need to be authorised and regulated by the FSA to give advice.

Jo4

Where should I start looking then or who should I be asking and what should I be asking for? Is there anything I should make sure a policy includes and excludes?

Woby_Tide

out of curiousity why are you wanting to go down this route? Not sure of the differences in prices would be between endowment style policy and straightforward life assurance but could you not just go for a standard life assurance policy, and then use any excess money to fund an ISA or some other investment vehicle which would provide an amount at the end of your expected term?