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Originally Posted by Bex
most people do have ISA's now..... but don't forget for mini cash ISA's the gov are lowering the limit to £1000 next tax year, so until march 05 you have a limit of £3000
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Which is hardly in line with the governments policy statement to encourage more saving (which is a whole other topic).
I would not be suprised if the £3k limit was extended at the next budget.
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Originally Posted by ianathuth
You have to remember the difference between life insurance and life assurance. The former pays out in the event of death, the latter at a predetermined time or death, whichever comes first.
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Any Assurance policy is a form of investment.
An Insurance policy pays out when an event occurs. Better described as Death Insurance (though it also generally includes Terminal Illness Payout, so if you are diagnosed with say terminal cancer, it pays out at that point, not on death)
Life insurance itself is cheap. My cover (well I suppose it's actually Mrs H's cover) for 300k costs me £12 a month. In the Assurance policy an element will be for this payout, the balance will be an ivestment vehicle such as a low cost endowment, so if you are paying £70 in a month £12 will go to the life cover and the balance of £58 is a savings plan.
THese days it is better to split the products so you are buying the product you specifically needed. The Life Assurance is a throwback to / vehicle that can be used alongside an interest only mortgage. Realistically you would probably be better off separating the policies and getting cheap life cover from say direct line (use an online price comparator) and a low cost endowment from a better perfoming provider, rather than both from a mediocre providor.