What does Martin Lewis say about over 50 life insurance?
Martin Lewis warns consumers to be cautious about over 50 life insurance and feels many parents in their fifties and sixties can end up paying more in premiums than their family ever receives as a payout. He points out four main concerns about these policies which are, lifetime payments, being locked into the plan, losing everything if payments stop and the impact of inflation. Martin Lewis also accepts that for some over 50s, especially those with medical problems or who want a simple way to leave a small lump sum to their loved ones, these plans can still have a place. For parents, his comments are a useful reminder to look carefully at the numbers and compare over 50 plans with standard life insurance before deciding how best to provide a lump sum for your children and grandchildren.
Is Martin Lewis completely against over 50 life insurance?
Not necessarily, Martin Lewis certainly has reservations about over 50s life insurance which are also justified from a financial experts perspective. However, there are some potential uses and positive points to be considered when thinking about these policies to provide a small lump sum to your family to pay for things like funeral expenses. He has also said in the past that some over 50s life insurance companies are to be avoided, such as SunLife, but others do offer better value for money.
Why is Martin Lewis concerned about over 50 life insurance for parents?
One of his main concerns is that mums and dads may sign up for a policy that feels affordable now but later means years of payments, rising living costs, and a fixed payout that might not stretch very far for the family they want to support. It is extremely important to consider all of the facts and variables when you buy over 50s life insurance, and ideally you should speak to your family about it so they also know what you’re doing for them.
When can life insurance for over 50 actually help a family?
These plans can especially suit parents over 50 who have health problems (e.g. diabetes, cancer, heart conditions, etc.) which means that they might struggle to get standard life cover. They might also simply want a quick guaranteed cash sum to help cover funeral costs or leave a small gift for children without the hassle of applying for traditional life cover.
What does Martin Lewis recommend before taking over 50s life insurance?
Martin Lewis also makes some useful suggestions to parents before taking out over 50s life insurance to help weigh up the value against traditional life insurance and specific funeral plans. Ideally, you should compare quotes and cover options from all three of these types of cover and even consider whole of life insurance for higher sums assured, especially if you’re younger.
Key Points: What does Martin Lewis say about over 50s life insurance?
- Martin Lewis sees over 50 life insurance as useful for some, but potentially poor value for many parents.
- His main worries are: paying in more than your family receives, being locked in, losing cover if you stop paying and inflation shrinking the payout.
- Over 50 plans can make sense if health is poor or standard life insurance is hard to get.
- Parents in reasonable health often get more cover for their children by choosing regular life insurance instead.
- Newer over 50 policies can be more flexible, with payment holidays and options to reduce premiums.
- It is important to think about what the money is really for – funeral costs, debt, or a gift to children – before choosing a policy.
- Comparing over 50 plans with level term, whole of life and even prepaid funeral plans can help parents avoid overspending.
In this guide, our experts look at the most recent advice and guidance from Martin Lewis and his team of money saving experts about over 50s life insurance. This article looks at some of the warnings that MoneySavingExpert.com raises about these policies and we explain where they can be useful for people, especially people with pre-existing medical conditions.
Who is Martin Lewis?
Most households in the UK will have heard of Martin Lewis and will be familiar with the work that he does to protect consumers against unfair or unreasonable financial products. Martin Lewis originally shot to fame as the founder of MoneySavingExpert.com in 2003 and has since become the go-to for millions of families and households with financial decisions or complaints. Mr Lewis has appeared on TV, radio, and in print over the years to provide his own expert views and opinions about various topics, from student loans to the payment protection insurance scandal.
Does Martin Lewis recommend over 50 life insurance?
The simple answer is, Martin Lewis does not recommend over 50s life insurance and he talks about some serious concerns with the value of these policies for most people. One of Martin’s key issues is that these products have historically used trusted celebreties such as Michael Parkinson and Carol Vorderman to help validate the products value. These seemingly caring and harmless adverts have persuaded millions of policyholders to part with their money, when in reality, an over 50s life insurance policy is the wrong product for them.
When you look closely at the maths when buying an over 50s life insurance policy, you can quickly calculate that for those living longer in to retirement, they can cost more than you claim when you die. On the other hand, for people with pre existing medical conditions or shorter life expectancy, these policies can provide a simple and affordable alternative to traditional life insurance, but only if you can afford it and for people who require smaller payouts for things like funeral expenses.
1. Can I pay in more than over 50s life insurance will pay out?
Over 50 life insurance typically asks for premiums to be paid every month for life, or sometimes until around age 90. This is because there is no set end date in most plans, there is a real possibility that the total amount paid in over many years could be more than the fixed cash sum your family receives when you die. This is one of Martin Lewis’s main issues, especially for parents watching every pound. From his perspective, if someone is in good health and goes on to live a long life, the plan can become poor value compared with regular life insurance or with simply saving money over time.
However, it is also worth remembering that over 50 cover is still insurance. Like home or car insurance, you are paying to cover a risk, not to build a pot of savings. With these policies there is a guaranteed payout from a certain point onwards, even if you have not paid in very much yet. For example, if a parent dies after just three years of paying into the plan, their family would still receive the full cash sum, even though only 36 monthly payments have been made. For households where health is already a concern, that guarantee can feel reassuring, provided they are comfortable with the ongoing cost.
2. Can I cancel over 50s life insurance?
Another concern Martin Lewis raises is that most over 50 policies do not allow you to get any money back if you decide to cancel your policy. These plans are not savings accounts and they are not meant to be cashed in. If a parent signs up, pays in for several years and then cancels the policy, the cover stops and everything paid so far is simply gone. For families whose income can fluctuate because of work changes, childcare costs or supporting young adult children, this lack of flexibility can be a big drawback.
This is why it is so important for parents to choose a monthly premium that still feels realistic in the future, not just today. It can be tempting to pick a higher premium to get a bigger payout, especially when thinking about leaving something for children, but that higher amount has to survive rising bills, possible job changes and unexpected expenses. If there is any doubt, many families are better off choosing a lower premium they can comfortably maintain, or looking at a different type of life insurance that has a set term so payments do not go on forever.
3. What happens if I miss a payment or if I’m struggling to pay?
In the past, over 50 life insurance could be very unforgiving if a payment was missed. One missed direct debit might mean the plan was cancelled, the cover ended and the parent lost every penny they had put in. Martin Lewis highlighted this as a serious risk for people on tight budgets. In his view, any policy that wipes out years of payments because a family hits a rough patch is something to be very wary of, especially when many parents have to manage unpredictable costs.
More recently, some insurers have softened their approach. It is now more common to see grace periods, payment holidays or the option to reduce the monthly premium so the plan does not automatically vanish the moment money gets tight. This is good news for parents, but it also makes it vital to check the small print. Some providers may still apply stricter rules than others. Before signing up, it is sensible to ask how many payments can be missed, what happens if a direct debit fails and whether the policy can be reinstated or adjusted without starting again from scratch.
4. Does over 50s life insurance have any protection against inflation?
Martin Lewis’s fourth big concern is the way inflation affects over 50 life insurance. Many plans pay out a fixed cash sum that never changes. Over ten, twenty or thirty years, the cost of living will almost certainly rise, which means the real value of that fixed amount will fall. A payout that might comfortably cover a funeral today may only stretch to a portion of the costs by the time the policy pays out, leaving children to make up the difference from their own pockets.
Some insurers now offer over 50 plans where the payout increases over time, often linked to inflation or by a set percentage. The trade off is that the monthly premiums usually rise as well. For parents, the question becomes whether paying more each year is manageable, and whether it still represents better value than other options. It may be that a smaller, fixed payout is enough if the main goal is just to leave a modest contribution towards funeral costs, especially if the budget cannot stretch to rising premiums.
Is over 50s life insurance better for people with pre-existing medical conditions?
Despite being tough on the marketing of over 50 policies, Martin Lewis does accept that they have a place, particularly for some over 50s who have health issues. Because these plans usually do not ask medical questions, acceptance is guaranteed if you are within the age range, often 50 to 80. The trade off is a smaller payout for the amount paid in, but for parents who might otherwise be refused cover or charged very high premiums for standard life insurance, an over 50 plan may be one of the few realistic options.
The guaranteed payout after a short waiting period, often one or two years, is especially important in this scenario. If someone dies during that period, premiums are usually refunded rather than the full sum being paid, but once the initial period is over, the full cash sum is guaranteed whenever death occurs. For parents who know their health is fragile and who want to make sure their children are not left scrambling to pay for a funeral, that peace of mind can outweigh the risk of paying in more than they get back if they live a long life.
Situations where an over 50 plan might fit
- A parent over 50 who has serious health problems and has been declined for regular life insurance.
- Someone who wants a simple, guaranteed lump sum for funeral costs and does not want medical checks or detailed questions.
- A parent with grown up children who already have their own financial safety nets, and only needs a modest contribution rather than large family protection.
- Those who prefer a small, fixed monthly payment they can set and forget, accepting that it is mainly about buying peace of mind.
Are Martin Lewis’s concerns about over 50 life insurance right?
Overall, his points are fair, especially for parents who are in reasonably good health. If a mum or dad in their early fifties has no major medical issues, there is a strong chance they could get more cover for their money by choosing regular life insurance. Level term or decreasing term policies can provide a much larger payout during the years when children are still financially dependent, and they often cost less per pound of cover. In that sense, for healthy parents, over 50 plans will frequently be a second best option rather than the first choice.
At the same time, Martin Lewis’s overall message is not that over 50 life insurance is always wrong, but that it is easy to misunderstand. Advertisements often talk about free gifts, guaranteed acceptance and peace of mind, which sound attractive when family finances are squeezed and parents want to feel they are doing something to help their children. His advice pushes families to look at the long term cost, consider how long they might live and compare alternative products before signing up for something that might quietly eat into their budget for decades.
What are the best alternatives to over 50s life insurance?
Before committing to an over 50s life insurance policy, parents can often benefit from stepping back and looking at the bigger picture. The right mix of products will depend on age, health, income and what the family actually needs if the worst happens. Below are some of the main alternatives that are worth comparing, especially from a money saving point of view.
Regular life insurance (term life)
Regular life insurance, such as level term or decreasing term cover, typically offers a much higher payout for the same monthly premium as an over 50 plan, particularly for parents who are still in reasonable health. Level term cover pays a fixed lump sum if you die within a chosen period, while decreasing term is often used alongside a repayment mortgage, with the payout falling roughly in line with the outstanding loan. These policies usually involve answering health and lifestyle questions, and sometimes a medical, but the reward for going through that process is usually better value.
For many families, a term policy that runs until the youngest child is financially independent can be a smarter way to protect them. It means if a parent dies while the children still rely on their income, a large tax free lump sum is available to cover the mortgage, childcare costs and other everyday bills. Once the children are grown and debts are smaller, the need for such a large payout usually reduces, which is why Martin Lewis often leans towards regular life insurance as the first option to explore.
Whole of life insurance
Whole of life insurance is another alternative. Unlike term cover, it is designed to pay out whenever you die, as long as premiums are kept up. It normally involves full medical underwriting, so acceptance is not guaranteed, but it can provide a balance between the lifetime payout promise of over 50 plans and the better value often seen with standard life insurance. For parents who want to leave a fixed inheritance to children or help with future costs like university fees for grandchildren, a properly chosen whole of life policy can sometimes work better than an over 50 plan.
Prepaid funeral plans
If the main goal is simply to spare children the cost and stress of arranging a funeral, a prepaid funeral plan can be another route. Instead of providing a lump sum of cash, these plans pay for a defined set of funeral services, often at today’s prices. This can protect against inflation in funeral costs and give families clarity about what is covered. However, they do not usually leave extra money for debts or for gifts to children, so they work best when combined with other savings or life cover.
Saving and investing separately
Some parents may decide that, rather than paying monthly premiums for an over 50 policy, they would prefer to put that money into a savings account, cash ISA or investment over the long term. This approach gives more control, as the money can be accessed in an emergency, and it does not disappear if payments stop. The downside is that there is no guaranteed lump sum if death happens early, and it requires discipline to keep saving regularly. For organised families who already have decent protection in place, this can be part of a sensible mix.
Top tips when thinking about over 50s life insurance
For parents weighing up whether to follow Martin Lewis’s cautious stance or to go ahead with an over 50 plan, a few practical steps can make the decision clearer. Rather than rushing in because of a limited time offer or a free gift, it helps to treat the policy like any other long term financial commitment.
- Work out what your family really needs – is the priority paying off a mortgage, covering funeral costs, clearing credit cards, or leaving a small gift to children?
- Check your health position honestly – if you are in reasonably good health, get quotes for regular life insurance first and compare the payout and cost.
- Calculate the long term cost – multiply the monthly premium by the number of years you might pay if you live into your eighties or nineties and compare that with the payout.
- Read the rules on missed payments – look for policies with grace periods or payment holidays, and make sure you know exactly when the cover would end.
- Think about inflation – ask yourself whether the fixed cash sum will still cover what you want it to in twenty years’ time.
- Look for independent guidance – websites such as MoneyHelper can help explain your options in more detail.
Conclusion: Is Martin Lewis correct with what he says about over 50s life insurance?
Martin Lewis’s comments on over 50 life insurance are a useful wake up call for consumers who naturally want to provide for their family. His four big concerns are paying in more than the payout, being locked in, losing everything if payments stop, and the impact of inflation, which are all worth taking seriously. For many consumers in good health, regular life insurance or a mix of other solutions is likely to give stronger protection and better value than typical over 50 life cover.
That said, over 50 life insurance can still be a helpful tool in specific situations, particularly for parents with health conditions who might find other forms of cover hard to get. The key is not to rule it out or rush into it based on advertising alone, but to see it as one option among several. By taking a little time to compare alternatives, read the small print and think carefully about what the family will actually need in future, parents can make a choice that fits both their budget and their hopes for their children and grandchildren.
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