Life insurance: anyone know of a policy that combines life cover AND investment?

[muffs1]

Apart from the critical illness, mortgage link and so on, does anyone know of a policy that combines death cover AND pays out at the end of the term? Seems we are being ripped off - there are no benefits for staying alive! I've searched high and low to find a policy that includes some investment aspect, but nix.

[michaelstjohn2001]

A whole life policy will protect you as well as build cash value, but it is not a particularly good investment. You are better off buying cheap term insurance, and investing the difference in something else that pays a higher interest rate.

[archery_dave]

Quite a few years ago I took out some endowment policies. These acted as life cover, as investments, and as cover for my mortgage. Fortunately, I did not die (yet !), and three of the policies have now matured, paying off my mortgage, and giving me decent lump sums.

The fourth policy is due to mature in a couple of years, but will not apparently do all that well, compared with the ones already matured.

There has been a lot of bad publicity about endowment policies in the last few years, but if you can find a company which still does them (that is, WITH-profits policies, not LOW-COST), then you might well be on to a good thing - but only in the long term.

Of course, as with any long-term investment, I challenge anyone to predict what will happen to any investment over a period of, say, 25 years !!!

[ANF]

Look out for the Unit Trust investments. You save monthly a set amount and you get get life cover for a certain amount. When your investment passes that amount then you will get paid out on the value of the investments. The trick is to take a new one out as often as you can. I was at one time investing and saving into 6 of them. After 25 years they all matures one after the other giving me a nice nest egg for my retirement. Some were pension related schemes and these gave more tax relief. Check them out

[lm050254]

For that purpose you have to buy either whole life, universal or endowment policies.
I know the argument about buying term and investing the difference, but the first thing against that is that you have to have the discipline of investing. Also term, is based on a number of years and you for a very good reason, like being very sick and not having too much time on the term, want to convert to a whole life, because at that time you are older will cost you much more, and some term policies, allow conversion just to a certain age,. The best thing is to have a decent whole life policy that you are to keep for the rest of your life and a term for the amount of money that you think is going to be needed while your family is growing