What does Martin Lewis say about life insurance?
Martin Lewis is one of the UK’s most trusted financial experts. The founder of MoneySavingExpert.com provides advice to millions of Brits on topics like saving money, insurance, credit, and more. So what guidance does Lewis offer when it comes to life insurance?
Here is an overview of Martin Lewis’ main tips and perspectives on finding the right life cover at the lowest cost.
Focus on Term Life Insurance
For most people, Lewis strongly recommends term life insurance. This provides affordable pure protection for a set period of time. Lewis says whole life insurance that builds cash value tends to be poor value for money for the average consumer. The high fees eat away at returns. Term life gives bigger death benefits per pound spent.
Shop Around Annually For Best Rates
Life insurance rates can vary widely between providers. Lewis advises shopping around for quotes every 12 months or so, even if happy with your current insurer. This ensures you’re always getting the most competitive premiums. Set calendar reminders to compare prices on comparison sites.
Consider Decreasing Policies For Mortgages
If you want coverage to pay off a declining balance mortgage, Lewis suggests considering decreasing term life plans. As the mortgage balance goes down, so does the payout amount. This can cost much less over time than level term insurance with fixed payouts.
Buy When Young To Lock In Low Rates
Premiums get cheaper the younger you are when starting a new policy. Lewis says buying early makes sense to lock in long-term low rates. Having coverage in place offers peace of mind and avoids future uninsurability if health deteriorates.
Don’t Rely on Employer or Group Plans
While group life insurance from employers or affiliations provides some protection, Lewis cautions against relying solely on these policies. The coverage may end if you change jobs. Getquotes for individual policies so you control the terms.
Consider Critical Illness Cover
In addition to life insurance, Lewis often recommends critical illness cover. This pays out if diagnosed with a major illness like cancer or stroke. It can help cover costs associated with treatment and recovery.
Watch Out For Exclusions
Read the fine print carefully and be aware of any exclusions that may prevent a payout. Lewis warns restrictions around hazardous hobbies, pre-existing conditions and suicide may apply. Know what’s not covered.
Choose Multi-Life Policies For Savings
Some insurers offer discounted premiums if you bundle multiple policies under one plan. For example, joint life insurance or coverage for your family. Lewis notes these multi-life policies can bring cost savings and convenience.
Use Comparison Sites Wisely
Lewis founded MoneySavingExpert for a reason – he believes finding savings is essential. He recommends using comparison sites when getting quotes, but notes it’s also important to go directly to select insurers as well. Comparison sites don’t include every provider.
Pay Annually For Lower Rates
One cost-cutting tip from Lewis is to pay annually rather than monthly, if possible. Annual premiums are typically cheaper, though monthly helps cash flow. Do the maths to see whether annual payments bring savings even after investing the lump sum.
In summary, Lewis takes a practical approach by emphasizing term life insurance, locking in early rates, shopping around routinely, and using resources like comparison sites judiciously. His advice aims to get consumers the most protection for the least cost.