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Insurance Isas given welcome boost

Date: Thu, 11 Dec 03 Analysis

LONDON, UK - Under provisions made in the Chancellor's pre-Budget report yesterday, investors will now be able to put up to £7,000 in insurance-linked products in a maxi Isa after the limit was abolished.

Currently, it is possible to save up to £3,000 in a mini share Isa, £3,000 in a mini cash Isa, and £1,000 in a mini life insurance Isa.

Alternatively you can invest up to £7,000 in a single maxi Isa. You can hold £3,000 in cash, £1,000 in life-insurance, and the remainder - up to £7,000 - in shares.

Simon Farrant, spokesperson for specialists advisers Towry Law, welcomed the announcement believing it will drive more money into Isas.

Mr Law said: 'This will allow investors far more choice when taking out an Isa, which is always a good thing. It should also encourage more providers to offer insurance-linked products, bringing more choice to the market overall.'

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