I want to get Life Cover with a cash return. What is best option.?

Question

I have just completed a 15 year life endowment policy which gives me a lump sum next month. I now need to take out more life cover but would like a similar arrangement where i get a return in say another 10 or 15 years but i dont understand if it is unit trusts or what it is I need to get. Can anyone help please ?

Answer 1

This is what you should do. Do NOT under any circumstances whatsoever take out another endowment policy. They have underperformed terribly and they are now totally discredited as an investment vehicle.

Instead, take out a Term Assurance policy (if you want death cover) - this will cost you peanuts, particularly if you are under 30. That covers the life assurance part. Then, put the rest of the monthly amount that you want to save, into either a Cash ISA (currently 5.80% TAX FREE available from national savings) or into an Equity (shares) ISA.

So, if you were planning to save £50 a month for 15 years, put £15 per month into insurance (nothing back unless you die - that's why it's SO cheap!) and £35 per month into the ISA. In a Cash ISA (for example), £35 per month for 15 years at 5.80% would give you a tax-free cash sum of £10,186.

Sound good for £35 a month? It is! For the insurance side of it, apply online (very easy) at Virgin Insurance. For the ISA, go to your local Post Office or you can probably apply online - National Savings and Investments.

I hope this helps.

Answer 2

There are many options you can look at. What is your most important need? Is it protection? Is it returns?
You can get, universal life or unit trust and buy term.

Answer 3

some tips