The Return Over Your Life On Your Investment

On average, the return over your life on your investment of £120,000 will be no more than £17,000 or £18,000.

For example, at seventy-five Mrs Brown could expect to collect her £1,9 89 for about eleven years - a total of £86,779.

When she dies, her heirs would inherit £120,000 less. However, any liability for inheritance tax, will be reduced as her estate is reduced by the amount of the loan.

So they may not lose the full £9 6,000. In any case, it is sensible to explain your intentions to your heirs so that they are aware of the arrangements you are making.

However, it is not generally advisable for your heirs to try to act in the place of the insurance company and pay you the income themselves so that the value of your estate is kept intact.

First, you may live a lot longer than the average! Second, few people have incomes which are secure enough to guarantee that they can honour a lifetime obligation to you. And third, you would lose a great deal of the independence which owning your own home gives you.

More on - Capital Protection

or Home Reversion Schemes

Capital Protection

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