What Is Martin Lewis' Advice On Over 50 Life Insurance?

Over-50s life insurance is widely marketed as an easy way to leave money behind for loved ones. But consumer experts, including Martin Lewis, have repeatedly warned that these policies are often poor value and commonly misunderstood.

This guide explains how over-50s life insurance works, why MoneySavingExpert urges caution, and how Which?, another consumer champion, views these products, so you can decide whether they make sense for your situation or whether another financial product may suit you better.

What is over-50s life insurance?

Over-50s life insurance is a type of whole-of-life policy designed for people typically aged between 50 and 80 (age limits vary by provider).

Key features

• No medical questions
• Guaranteed payout when you die
• Monthly premiums, usually paid for life
• A fixed payout that does not increase over time

These policies are often promoted as a way to help with funeral costs or to leave a small lump sum to the family.

Martin Lewis’ core warning

Martin Lewis has consistently warned that many people pay far more into over-50s life insurance than the policy ever pays out. The issue is structural:

• You pay premiums for life.
• The payout is fixed.
• The longer you live, the worse the value can become.

For people in average or good health, MoneySavingExpert repeatedly points out that saving the same monthly amount can leave you better off.

Why over-50s life insurance is often poor value

You can pay in more than you get out

It is common for total premiums to exceed the payout, sometimes by a wide margin, especially if you live into your 80s or 90s.

Payments usually never stop

Unlike term life insurance, premiums typically continue until death. If you stop paying, cover usually ends, and you get nothing back.

Payouts lose value over time

Because the payout is fixed, inflation steadily reduces its real-world spending power.

Missed payments can cancel cover

Even after years of paying, missing payments can invalidate the policy. These risks underpin why MoneySavingExpert advises people not to buy over-50s policies without fully understanding the long-term cost.

When over-50s life insurance might make sense

Martin Lewis accepts that over-50s life insurance can work for a small minority of people. It may be worth considering if:

• You are in poor health.
• You would struggle to pass medical underwriting for standard life insurance.
• You understand that you may pay in more than you receive.
• You value guaranteed acceptance over value for money.

In these cases, the lack of medical checks can work in your favour.

When it is usually a bad idea

Over-50s life insurance is generally a poor choice if:

• You are in average or good health.
• You are buying it primarily to cover future costs.
• You have not compared total premiums over time.
• You could realistically save the same monthly amount instead.

MoneySavingExpert’s position is clear, certainty comes at a high long-term cost for many buyers.

Which? consumer warning

Which? takes a particularly firm stance on over-50s life insurance. It does not generally recommend these policies and highlights that many people will pay more in premiums than they ever receive.

Which? also points out that premiums are usually paid for life, payouts are fixed and eroded by inflation, and missed payments can result in losing all cover.

Crucially, Which? stresses that over-50s life insurance is not the same as life insurance for people over 50, and that many consumers mistakenly believe these plans are their only option.

Better alternatives to consider first

Before buying over-50s life insurance, both MoneySavingExpert and Which? encourage people to consider:

• Savings: Setting aside a regular amount offers flexibility and avoids overpaying.
• Standard life insurance: Which? notes that many people in their 50s and 60s can still access term or whole-of-life policies with better value, provided they pass medical checks.
• Doing nothing: If dependants are financially secure, insurance may not be necessary at all.

Key questions to ask before buying

If you are still considering an over-50s policy, ask:

• How much will I pay in total if I live to 85 or 90?
• Do premiums ever stop?
• What happens if I miss a payment?
• How will inflation affect the payout?

If these answers are unclear, it’s a sign to walk away.

The MoneySavingExpert rule of thumb

Drawing together MoneySavingExpert and Which? guidance, over-50s life insurance should only be considered if you fully understand the maths, accept that it may be poor value, and have limited alternatives.

For many people, it is peace of mind at a price, and often an expensive one.

Final word

Over-50s life insurance is easy to buy, but that simplicity can mask long-term risks. It is not automatically a bad product, but it is frequently sold to people for whom it is not suitable.

Taking time to compare alternatives, calculate total costs, and challenge marketing claims can prevent costly mistakes later on.

Compare over 50 life insurance

FAQs