Life Assurance with Profits - good, bad or Pension?

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A 17 year old policy matures in two weeks. It's performance has been around 7.5% overall for a £25/month investment.

As the risk of sounding like a total knob, it is worth taking out another for say 15 years (which will take me to 60) or top up my private pension?

[ellroy]

Tax wise pensions are much better, tax free compared to taxed at basic rate albeit with no further liability to higher rate tax.

The insurance offers just that, plus access to all capital without issue when it matures. The pension generally will have no insurance element so if you drop down dead a return of fund value is all your dependents get.

Depends on what your needs are. Life Cover? Savings for retirement? Access to capital?

Don't forget you can save regularly in an ISA, free of tax, and if combined with simple life assurance may be better returns on offer than the Endowment route.

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ellroy said:

Tax wise pensions are much better, tax free compared to taxed at basic rate albeit with no further liability to higher rate tax.

The insurance offers just that, plus access to all capital without issue when it matures. The pension generally will have no insurance element so if you drop down dead a return of fund value is all your dependents get.

Depends on what your needs are. Life Cover? Savings for retirement? Access to capital?

Don't forget you can save regularly in an ISA, free of tax, and if combined with simple life assurance may be better returns on offer than the Endowment route.

Thanks for that, pretty much what I've just been told - Assurance with Profits products no longer exist.

A quick google for current products lists moneysupermarche & the ilk as featured links.

I tend to avoid such places but are they any good?