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  • FIRST POST
    • campbell19925
    • By campbell19925 4th Jul 18, 7:37 PM
    • 146Posts
    • 181Thanks
    campbell19925
    Return of premium life insurace
    • #1
    • 4th Jul 18, 7:37 PM
    Return of premium life insurace 4th Jul 18 at 7:37 PM
    Im 26, just wondering if this is worth it? Seems a rather sound investment since you cant really lose out financially.

    If so, can anyone reccommend anywhere that lets you take this out as I cant find anywhere to do a comparison, it seems like most sites are the ones which give you a call back and I dont want to give details out atm.

    Thanks
    Last edited by campbell19925; 04-07-2018 at 7:45 PM.
Page 1
    • Weighty1
    • By Weighty1 4th Jul 18, 8:20 PM
    • 366 Posts
    • 166 Thanks
    Weighty1
    • #2
    • 4th Jul 18, 8:20 PM
    • #2
    • 4th Jul 18, 8:20 PM
    If you're struggling to find a return of premium insurers it's likely because there are none. I know there were a few niche offerings in the past but even then they were few and far between with not particularly good products which weren't particularly cost effective for the cover provided.

    You don't get car insurance premiums back if you don't claim, or pet insurance, or buildings and contents insurance. Why would you think insurers would offer cover which basically means they have almost no opportunity to make any money?
    • campbell19925
    • By campbell19925 4th Jul 18, 8:22 PM
    • 146 Posts
    • 181 Thanks
    campbell19925
    • #3
    • 4th Jul 18, 8:22 PM
    • #3
    • 4th Jul 18, 8:22 PM
    If you're struggling to find a return of premium insurers it's likely because there are none. I know there were a few niche offerings in the past but even then they were few and far between with not particularly good products which weren't particularly cost effective for the cover provided.

    You don't get car insurance premiums back if you don't claim, or pet insurance, or buildings and contents insurance. Why would you think insurers would offer cover which basically means they have almost no opportunity to make any money?
    Originally posted by Weighty1
    I assume that they invest your money and make a return on it.
    • ACG
    • By ACG 4th Jul 18, 8:55 PM
    • 17,494 Posts
    • 9,301 Thanks
    ACG
    • #4
    • 4th Jul 18, 8:55 PM
    • #4
    • 4th Jul 18, 8:55 PM
    They do invest the premiums, thats how they can afford to pay out 100,000 for a premium of 10 a month over 30 years (as an example).
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • HappyHarry
    • By HappyHarry 4th Jul 18, 9:05 PM
    • 754 Posts
    • 1,107 Thanks
    HappyHarry
    • #5
    • 4th Jul 18, 9:05 PM
    • #5
    • 4th Jul 18, 9:05 PM
    It would be better to take out regular life assurance and have separate regular savings going into an ISA.

    It won't be more expensive, and if you need to access the money, you dont need to cancel the life assurance.

    This is the reason why return of premium products aren't offered anymore, it's cheaper and more flexible to set up separate products.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • csgohan4
    • By csgohan4 5th Jul 18, 8:21 AM
    • 4,880 Posts
    • 3,115 Thanks
    csgohan4
    • #6
    • 5th Jul 18, 8:21 AM
    • #6
    • 5th Jul 18, 8:21 AM
    life insurance the younger you are the cheaper it is, certainly something to consider if you have dependants or will be in future
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
    • lisyloo
    • By lisyloo 5th Jul 18, 10:56 AM
    • 22,491 Posts
    • 11,088 Thanks
    lisyloo
    • #7
    • 5th Jul 18, 10:56 AM
    • #7
    • 5th Jul 18, 10:56 AM
    Im 26, just wondering if this is worth it? Seems a rather sound investment since you cant really lose out financially.
    If its nominal return of premium then youre losing out on any gains which could be significant.


    Whether it's worth it depends on your circumstances.
    Do you have any dependents that need to be catered for after your death?


    If you don't then there isn't much point getting life insurance.


    The business concerned are going to set it up so they make a profit on top of their costs, so in general you lose out.


    The only other reason for getting life insurance would be to cover funeral costs, but then you'd need a whole of life plan not one that stops at a certain age. I don't know how this compares with a proper funeral plan but having had a relative die recently I can say it was extremely helpful that everything was set up in advance. Not just financially but the fact that they had set up their wishes as they wanted.
    We only had to pay for flowers and one bill which wasn't really realted to the funeral (transferring the body to a local doctor as they will not travel to body). These days the whole process is more stringent post shipman, but we did find it a bit weird that they had to effectively put him in the back of van and take him to/from funeral home to doctors.
    • kingstreet
    • By kingstreet 5th Jul 18, 10:59 AM
    • 34,116 Posts
    • 18,511 Thanks
    kingstreet
    • #8
    • 5th Jul 18, 10:59 AM
    • #8
    • 5th Jul 18, 10:59 AM
    It would be better to take out regular life assurance and have separate regular savings going into an ISA.

    It won't be more expensive, and if you need to access the money, you dont need to cancel the life assurance.

    This is the reason why return of premium products aren't offered anymore, it's cheaper and more flexible to set up separate products.
    Originally posted by HappyHarry
    This ^

    Plus greater tax efficiency.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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