I've been made redundant, what investment types should I look at?

In the 90's my parents had an Assurance which they cashed in the 2000's.

Are these still available? If so, could you please let me know who does these policies?

Can you invest a lumpsum in a pension and then contribute a minimum amount until.

It’s just I was made redundant just before Christmas. Can you invest around £3000 in Investment trusts what type of income would I receive secondly what is fee for this type of investment?

Are these taxed?

Thank you.

Hi Sonia, thank you for your questions.  

It sounds as though the policy that your parents had may have been an endowment policy. Endowment policies are investment products that you buy from a life assurance company. They are set up as regular savings plans and at the end of a set period pay out a lump sum. The policy includes life assurance, so it will also pay out if you die during the term. They are still available but they are not as popular these days. Since ISA’s came along people have tended to keep their savings and their life insurance separate. ISA’s offer a very tax efficient way of saving for the future, and the cost of life insurance has come down significantly in recent years due to people living longer, healthier lives.

With regards to your queries around lump sums into a pension then yes, you can invest a lump sum into a pension and then pay as much or as little as you want until things become more affordable for you. The minimum contributions allowable will vary by product provider so you may need to shop around. 

However, if you have only recently been made redundant and have not yet found a new role, then it may be better to wait until you have more security around your monthly income before committing to additional monthly outgoings.

You also have a question around investing in investment trusts. Yes, you certainly can invest £3000 into an investment trust and different companies will have different charging structures for these type of plans, but I would suggest you take advice to find out if this is most suitable investment vehicle for you.  

You also ask about the taxation of investment trusts but if you haven’t already contributed to an ISA then it may be more beneficial to look at a stocks and shares ISA which will be free from income and capital gains tax rather than direct investment into an investment trust which could be subject to tax. As you have a number of questions and your financial situation seems to be in flux, I suggest that you should speak to a financial planner who can look at your whole situation and then make some suitable recommendations based around your income and expenditure, and your long and short term goals.