Which policy? Things to think about

Look carefully at all the following points before deciding to buy any one particular contract:

Investments: Since the sum paid out on maturity depends on the investment performance of the fund, the quality of the investment managers is most important. Over the past ten years, almost all ordinary shares have increased in value, but there is, of course, no guarantee that the unit trusts which have recently performed particularly well will continue to do so in the future. Since no one can predict in advance which investment policy will eventually prove to be most successful, you may as well select an established fund with a good investment record.

Do not take out a policy linked to a unit trust specializing only in property, overseas investments, banking and insurance shares, or other particular forms of investment, unless you have a particular reason for doing so. Although these specialized trusts may well turn out better in the long run, you are far safer linking your policy to a fund invested in a wide spread of ordinary shares.

Charges: In addition to the investment techniques just described the amount of money available for you at maturity also depends on how much of each premium actually goes into units. From your gross premium, your insurer deducts the cost of management expenses and life assurance charges. Since the cost of life assurance depends on your age and expectation of life, these deductions vary with the type of policy selected, the amount of life assurance offered, the term of your policy and your age at entry. Many insurers describe this net premium as the amount invested in units, but you must not be misled by this.


Which policy? Things to think about

Payroll Giving
It’s all very easy to organise.
Just ask the Personnel or the Payroll Department at your company and, if they already have a scheme, they will give you the relevant forms.  HM Revenue & Customs’ website has a list of Payroll Giving agencies and explains payroll giving in more detail.

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read on: Life Assurance as Investment

Look carefully at all the following points before deciding to buy any one particular contract:

Investments: Since the sum paid out on maturity depends on the investment performance of the fund, the quality of the investment managers is most important. Over the past ten years, almost all ordinary shares have increased in value, but there is, of course, no guarantee that the unit trusts which have recently performed particularly well will continue to do so in the future. Since no one can predict in advance which investment policy will eventually prove to be most successful, you may as well... see: Life Assurance as Investment