With death and taxes being the certainties of life, I’ve been buying a series of over 50 life assurance policies this week.
For those in good health, this is a terrible idea. For those with a terminal diagnosis but expecting to live for at least a year, fill your boots. For me, where my life expectancy is now less than a year, it’s just a hobby to bag the gift cards and cashback issued with these policies. They don’t ask any health questions!
It will also generate more paperwork for my sister. These companies refund the premiums paid on death. So survive six months with a £10 a month policy and she’s claiming £60. But if I’ve already snagged a £75 M&S gift card I see that as good value for money.
I can also write some of these policies in trust. That £60 left in a savings account would turn into £36 on death thanks to the nasty tax system. Written it trust it retains its £60 value for those I care about,
Granted, this is only skirting around the fringes of the IHT bill I now expect my state to pay. But if I do get through to my next birthday the returns for very little outlay start turning into £thousands. Plus all those gift cards these companies give away up front.
It might seem an unusual thing to do, but it makes absolute sense financially. Even if the gains are only likely to be the gift card values. Something is better than nothing. More is better than less. And this new addiction to life assurance will deliver more to those I care about. Even if it’s only a little bit more.
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