Life insurance

[phl666]

A few years ago, it was possible to get life insurance which, if you didn't die, paid some of the money back to you at the end of a 10 year term.

Is it still possible to get such a policy, or if not, why not?

Maybe it is just called something else now.

[Loosehead]

Yes it's called an Endowment. There is an element of life assurance and an element of investment. It's what a lot of mortgages where once using as a repayment vehicle but the equally well work/fail when not attached to mortgages.

[dzug]

An endowment would normally (??) pay you back well in excess of what you paid in.

There are cheaper life insurance policies that pay you back some of the premiums if you survive the term. I'm pretty sure they are still available (I've seen them advertised occasionally) - don't think there's a special name for them. Con maybe.

[Ethel]

Very difficult to get this sort of policy now - the overall returns were poor for the money you invested, especially if you didn't die within the term!

If you can afford it you would probably be better off buying a normal life assurance policy that pays out on your death - this would be a lot cheaper each month than the sort you are looking at - and investing the difference in a regular saver account. Especially look at the long term savings account that pay higher interest.

[spudqueen]

I had one with the Pru but ended up cashing it in as it really wasn't going to pay out very much. That was about 20 years ago and I seem to remember vaguely that they were being phased out.