Hi I am looking for a product that will cover against life, and also critical illness cover (possibly), but that will also give a lump sum payment at the end of a term.
This is, I believe, essentially an Endowment policy. Given all the bad publicity about endowments lately, what is the best approach to achieve this result? Should I take out a life assurance policy, and a savings policy??
Any advice appreciated.
Thanks
Are you wanting any guarantees and what investment risk are you prepared to take? You are right in that what you want is essentially an endowment policy, but a lot of the bad publicity is due to the shortfalls because of poor investment performance. But most investors do not realise that they don't have to be in a share type fund. They could use other funds such as property or even cash. The charges need looking at as well.
Otherwise, take out a monthly unit trust savings plan plus the required life assurance, which could be on a decreasing basis (as it would be if bundled in an endowment policy) so that the payout on death would be partly met by the U/T cash-in value. Then you could use a good U/T fund (the definition of
*good* being a question of opinion).Rob Graham
Get a life assurance policy
Get a critical illness insurance policy
Put some money in a building society savings account.
"Jonathan Bryce" wrote
Why not "put the money in" the mortgage a/c instead (ie, pay off bits of the mortgage as you go along)? You'd probably effectively get a higher "rate of return" than paying the money into a savings a/c ...
Oh yeh - that's more like a repayment-type mortgage!
Does he have a mortgage? Or does he just want the endowment as a savings plan couple with life/CI cover.
Rob Graham
In message , Paul Aspinall writes
This isnt a good idea. Those companies that are good at investment arent any good at protection (i.e. Life Cover & Critical Illness) and those that are good at protection are useless at managing money.
Also, it isnt logical to expect a lump sum payment from an insurance policy, you wouldnt expect one from your car or house insurer, so why your life insurer?
Yes and No. Certainly take out a life policy either with critical illness included or as a stand alone policy but dont save in anything which includes the word 'policy'. Use a monthly contribution Unit Trust or OEIC or combination of funds in an ISA wrapper if you can. Try and use a fund supermarket type approach and spread the monthly amount around a few fund managers within the one supermarket, such as Fidelity, Co-Funds, Skandia etc.,
Do it through a IFA like bestinvest which will lower the charges you pay to invest.
In message , snipped-for-privacy@gmail.com writes
Yes, but only do it this way if you know exactly what you want and dont want advice now and later. It seems to me to the OP WILL want ongoing advice when monitoring the funds and their performance in which case that advice would be worth paying for.
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