Investment and Insurance Policy

[andy0311]

Can someone help with financial advice? I would like to take out a 25 year insurance policy which is also a savings/investment plan as well - ie there will be a financial payout at the end of the 25 years, but also a lifeinsurance policy if I die during this time period. Any advice as to what type of policy I should go for? Thanks

 

[PMU]

You should really consider what you intend to do before you buy such a policy. Typically, such policies (whole of life) are less than transparent and use gains from the investment element to pay the life insurance element. Of course, as you grow older the cost of the life policy increases so your gains get eaten up in increased life charges. You can find out more info on the NCA’s http://www.itsyourmoney.ie web site. In the past these were sold as investment vehicles, which clearly they were not. You should consider getting a term life policy that will give your dependants a lump sum if you die during the term of the policy, and invest separately in diversified assets using index trackers, ETFs, etc.

 

[NorfBank]

Fully agree with PMU.
Do not mix your protection and savings/investment needs into one policy.

 

[Rory Gillen]

Its not this site you need but an investment advisor. I would agree that you should separate the life policy and investment policy - ask for separate policies and go for the lowest quotes on the life side.