MARTIN LEWIS ON LIFE INSURANCE

In this article we will look at.....

Martin Lewis: Best Life Insurance - Formula

Martin Lewis OBE is a highly successful Financial Reporter & Consumer Champion having set up Money Saving Expert. He also has his own TV Money Show. 

On Money Saving Expert Life Insurance website section, Martin Lewis is asked how much life insurance do I need? He says his Best Life Insurance formula is to roughly cover 10 x the annual income of the highest earner till kids have finished full-time education 

Following that principle, if you earn say £30,000pa gross, he says you should maybe consider insuring yourself after any mortgage, loans & debts are repaid for £300,000 life insurance (ie; 10 x the annual gross income).

Interestingly, in this Life Insurance Money Saving Expert 10 x example, he recommends insuring your gross annual income ie; £30,000pa but not the £24,000pa net after tax.  

moneysavingexpert.com/insurance/cheap-life-insurance/

moneysavingexpert.com/tax-calculator

* Adapted from Grant Cardone / Sam Leach

Following on from this Life Insurance Martin Lewis simple formula above, if you earned say £30,000pa and then worked for the next 35 years until retirement, you could potentially earn over £1 million gross ie; £30,000pa x 35 years [or more with any inflation wage rises]. This hidden income threat example is what could be sadly lost, if a working partner died prematurely. 

Sadly 1/30 children could lose a parent before they grow up

As such, in this very basic example you could possibly either insure yourself with;

1] Lump sum - term life insurance for @ £1 million over 35 years

2] Income monthly - family income life insurance for @ £30,000pa over 35 years. 

3] Or a mixture of the 2 plans - all dependant on your family circumstances

Neither takes into account repaying any mortgages, loans & debts.

• You can decide wether you want the cover to be level or inflation linked
• Single plan | 2 x seperate plans | Joint life insurance 1'st claim 

Martyn says many ordinary people are potentially Working Millionaires ?

​​​​​​As a Financial Adviser, I would also add on a simple formula to the Martin Lewis formula is to ideally fully protect yourself are 3 Things...

• Lump Sum > Repay any mortgage & debts, cover funeral costs
• Income  >  Help cover your monthly bills
• Lump Sum > Back up for holidays, education, emergencies

This basic formula is naturally dependant on wether you are married or cohabiting, have young or older dependants, retired or both working still.

Ultimately, enough life insurance is also down to what you can afford to pay. This calculation could also be made harder due to any pre-existing health issues, meaning possibly higher ‘rated premium’ insurance costs.

'Life Insurance Need to Knows' | Martin Lewis Advice

When considering Life Insurance Martin Lewis suggests you consider these 6 simple need to knows on Money Saving Expert;

1. Go for Guaranteed Fixed Premiums not Guaranteed Reviewable Premiums
2. Disclose all Health Conditions & Risks to avoid a potential non-valid claim
3. 2 x single policies can sometimes be better than a joint 1'st claim policy
4. Write your plan into trust helps avoid the taxman & probate delays
5. Switch & Save on existing cover eg; now given up smoking or health improved
6. Your protected under FSCS if the Broker or an Insurer goes bust

However, let's examine a few of these points in this article and what I think is the importance of getting professional advice.

moneysavingexpert.com/insurance/cheap-life-insurance/

What is Martin Lewis website ?  MoneySavingExpert.com

Martin Lewis website Money Saving Expert is always speaking about saving costs & getting the best value or cheapest deals. Whilst this may seem true, the online life insurance marketplace is such that often buying what appears to be the cheapest, sometimes could work out the most expensive, in more ways than one.

Martin Lewis Life Insurance advice and my own advice is maybe it is the most expensive purchase you ever make after property

Money Saving Expert attempts to educate people about many financial matters but suggests the cheapest life insurance option is via a online 'discount broker'. However, note you won't get advice ie; No comeback if what was chosen by yourself, not the broker, was inappropriate.

Then there are also life insurance brokers they mention who may operate on a non-advised basis. This gets confusing, as although you are now speaking to someone about your life insurance, actually again you won't be getting advice ie; No comeback if the policy chosen was inappropriate.

What do I mean by this? Well having helped give advice to many clients for over 25 years and over the last 15 years over the phone via our broker website. 

Here are 5 typical examples;

1] The Real Importance of Advice. Most Insurers online applications can be quite difficult to navigate asking many health, lifestyle, insurance & legal questions that you may or may not grasp. Unlike Martin Lewis Money Saving Expert, you may not have years of experience in dealing with various complex financial matters. Should your plan be convertible or renewable, include waiver of premium, setup into trust or owned by another person ? What does this all mean anyway ? 

A recent survey by an Australian financial website showed that where a financial adviser was involved giving advice, a claim payout was as high as 96%. However, where an individual had applied themselves on a ‘non-advised basis’ it was as low as 61%. 

https://www.apra.gov.au/news-and-publications/apra-and-asic-publish-latest-data-on-life-insurance-claims-and-disputes-2

2] Low start policies: A comparison or direct website shows a cheap life insurance premium & you see the word ‘guaranteed’ noted by all premiums. You therefore may assume all the plans quoted are the same. Wrong. Some Insurers offer these Lower start policies where it says their premiums are ‘guaranteed’ but the only thing that’s guaranteed is the price will go up annually or regularly in line with an Insurers guaranteed age-based formula. This could work out the most expensive policy in the end as Martin Lewis mentions in his 'need to knows'.

3] Waiver of Premium: A benefit helps cover your premiums if your income is threatened through hospitalisation, accident or illness due to say cancer, heart attack or stroke. In this instance, the Insurers help pay your premiums in your recovery to ensure the policy is not cancelled & valuable insurance cover remains. On some cheap plans this is either not available or only after 6 months wait, which is a long time.

https://www.covermagazine.co.uk/opinion/4022915/ria-wotherspoon-waiver-premium-crucial-cover

4] Declined future life insurance: If you now had to cancel your cheap life insurance due to a serious illness. You then try to get more cover later on, only to find that either the Insurers have now doubled your costs or perhaps declined future life insurance policy.

5] Critical illness v Terminal Illness: Your existing policy includes critical illness, which you believe is the same as terminal illness. You look online & see much cheaper premiums with terminal illness, so you go ahead and cancel your old critical illness plan. Only upon suffering say a cancer, heart attack or stroke do you find out that your old critical illness plan may have paid out whilst recovering, whereas your new plan will not.

Conclusion

As such, I believe does it not make sense to seek a fully qualified professional adviser help - if you are looking to successfully insure yourself for perhaps £¼million or £½ million or £1 million ? This advice should come with a fully documented report as to the 'Reasons Why' a particular insurers policy/ies & amounts of cover & term was chosen. So wether you were looking for Martin Lewis best life insurance guides on say AIG, Aviva or Vitality Life, more relevant, the financial advice given to you was appropriate to your own personal situation. Likewise, any shortfalls were maybe noted given the available budget.

Martin Lewis - Critical Illness Cover

Martin Lewis states, he is not a big fan of Critical Illness cover policies. Not exactly sure why, other than it is not a catch all illness plan. Critical Illness is a tax free sum paid out by the Insurers upon valid claim diagnosis of their specified critical illness. 

All the Leading UK Insurers offer Critical Illness cover Martin Lewis notes. Many people buy this product when taking out a mortgage or large loan ( often their biggest debt), to ensure all or some of it is repaid.

If reviewing the Best Critical Illness cover, Martin Lewis comments many plans offer from as little as types of well person female or male cancer's only, all the way upto over 50 | 100 different types of critical illness.

The typical top 3 benefits most UK Insurers cover are for specified cancers, heart disease or stroke. The reasons being that, statistically these are also the most common claims suffered by a person.

Policies can be setup in a sole names or a joint name 1'st claim basis. They can also include child critical illness cover either as optional extra or inclusive benefit. Dependant upon Insurers, the policy may also include access to cancer support, 2'nd medical opinions, Nurse support, GP 24/7, counselling & therapies. 

https://www.abi.org.uk/products-and-issues/choosing-the-right-insurance/life-cover/critical-illness-insurance/

https://www.criticalillness.org.uk/critical-illnesses-by-age.html

https://www.moneysavingexpert.com/insurance/cheap-life-insurance/

 The more you spend, then often the more comprehensive the critical illness plan with some enabling multiple claims. Noting that the product wording is 'suffered a critical illness', not just any illness. The chances of claim sadly are 1|4  women & 1|5 men before retirement.

Conclusion

As such, despite what Martin Lewis Money Saving Expert comments upon Critical Illness cover, I believe they are an important protection to have in your back up family or mortgage protection plans. eg; pay off your mortgage if you are critically ill.

Martin Lewis – Income Protection

As critical illness is not a catch all policy, Martin Lewis instead suggests looking toward an income protection policy instead. This type of sickpay insurance provides a tax free income, rather than lump sums upon diagnosis of sickness, accident or hospitalisation. It is paid out on valid claim after an initial waiting period of usually 1 or 2/3/6 months (based around your work and any savings) and ideally being unable to do your own occupation.

Income Protection benefit is then paid until either you go back to work, or upto 2/5 years per claim or if not then upto retirement. 

Conclusion

I agree with Martin Lewis that income protection is a valuable back up plan. If your work employer sickpay only covered you for say 3 months, what happens to your income after that ? Policies can vary from cheaper budget annually reviewable premiums with shorter claim periods, to more expensive and comprehensive sickpay coverage. 

https://forums.moneysavingexpert.com/discussion/5795658/income-protection-is-it-worth-it

Martin Lewis - Life Insurance for Mortgage

Martin Lewis on his money saving expert website has recommended some top need to know tips on Mortgage Life Insurance.

•  Mortgage Life Insurance can help repay your mortgage if you die
•  Switching insurers MAY help slash costs
•  You may need it if you have dependants
•  Consider joint mortgage protection if the mortgage is in joint names
•  Make sure your policy has guaranteed fixed premiums
•  Write your policy in trust to help avoid tax bills on death
•  Quitting smoking can reduce your premiums

https://www.moneysavingexpert.com/mortgages/cheaper-life-insurance/

Conclusion

Martin Lewis on Mortgage Life Insurance comments that if you are single and with no dependants, you may not need mortgage protection insurance cover at all. I would disagree here becuase as mentioned above, critical illness (often linked to mortgage life insurance) could help repay upon diagnosis often your biggest debt. 

Martin Lewis - Life Insurance Over 50

For Martin Lewis on over 50’s Life Insurance Money Saving Expert website, he says many people waste a fortune on this product. I would agree to some extent, as the marketplace is often characterised by life insurance with free gifts or adverts promoted by well known TV celebrities, like Michael Parkinson or Carol Vorderman.

https://www.moneysavingexpert.com/insurance/over-50s-life-insurance/

Commenting on the marketplace in 2021, Martin Lewis on Life Insurance for best over 50’s schemes are often sold on the basis of leaving a lump sum legacy or help cover funeral costs. Yet you can potentially pay in more than the policy premiums.

What Martin Lewis points out when asked what is the best Over 50's life insurance & that people maybe unaware of, is these no medical Over 50’s plans may usually have upto 2 years initial waiting period before a full death claim.

This means if you died of natural causes during this period they will not payout, only if due to an accident. This is because they usually ask no medical questions at outset. This means they are therefore perhaps ideal for people who have serious health issues, just don’t want to answer any health questions or just like a free gift.

Conclusion

For comparison, an underwritten Over 50’s whole of life insurance will potentially cover you immediately. They usually also will offer much higher lifecover amounts and for a similar monthly cost Contact us for a Comparison Quote 

Over 60 Life Insurance - Martin Lewis

Interestingly, there is no product brand marketed specifically for the Over 60 Life Insurance marketplace, in Martin Lewis Money Saving Expert website forum discussions.

However, his same comments re Over 50’s Life Insurance also apply for Over 60 life insurance ie; Benefits of Medical questions Over 60 lifecover v Pros and Cons of a no medical questions plan.

Conclusion

Again for comparison, an underwritten Over 60’s whole of life insurance covers you immediately. They may also offer far higher lifecover amounts for similar monthly costs.    [ So contact us for a Comparison Quote ].

https://forums.moneysavingexpert.com/discussion/5287062/over-60s-life-insurance-advice

Martin Lewis – Health

We have probably all clapped outside for the NHS over 2020. Without their support, many people would not have survived the pandemic.

However, it must be appreciated that it is not a bottomless pit. With growing population numbers in the UK, you may often have to wait in the queue for your routine check-up or operation.

Martin Lewis Health Insurance forum sections are full of people complaining about NHS issues. 

Conclusion

Naturally Covid 19 has made pressure on the health services even harder. Private medical insurance is often the answer for those people searching for best health insurance. Please contact us for help & advice.

https://forums.moneysavingexpert.com/discussion/5989229/which-is-the-best-private-healthcare

Martin Lewis Money Saving Expert - Background History

Martin Lewis like my own family grew up originally in the Manchester area.

Only recently has he told some of his own life story where he sadly lost his Mother at only aged 11. She was involved in a tragic road accident whilst out horse riding with his sister. This reportedly left him barely able to leave his own house ( In a ‘Times Newspaper’ Article 6/7/20 he revealed ).

https://www.thetimes.co.uk/article/i-didnt-go-out-for-six-years-after-mum-died-says-money-guru-martin-lewis-qtqmjq8lh

Except for going to school, the emotional impact left him he said with both extreme anxiety & trauma. 

Around a similar age then to Martin, my Uncle was also sadly killed in a tragic road accident. This left my devastated Auntie with 3 young children to care for both emotionally & financially.

I remember my own Mother in tears on the phone back then as her younger sister telephoned her in the early hours to explain her devastating family news. I woke up to hear my Mum crying. I was listening upstairs and looking through the banisters in confusion as Mum cried & cried. I was just told to go back to sleep and don’t worry.

My Mum at that time, like all family, asked her “is there anything I can do to help ?”

Once reality settles in, the effects to the whole wider family unit are both highly psychologically stressful but then ultimately become financial.

Unfortunately & all too often, only then once the worst has happened do more practical questions get asked, rather than the obligatory ‘When is his funeral?’. For my young Auntie then it was more like ‘How much does a funeral cost? ’ or ‘Do we have any life insurance?’ or ‘Had he made a will?’.

In today’s uncertain world, more and more people are seeking professional advice from people like Martin Lewis on the Best Life Insurance advice or similar financial answers to their questions. https://www.youtube.com/watch?v=TXM7BRv438k

Fortunately, there are many Financial Advisers like myself who can try and help give Peace of Mind to those searching Money Saving Expert website or the web for life insurance guidance asking Should I get life insurance Martin Lewis?

Life Insurance Martin Lewis, Advice & its Importance to Martyn

These events left a lasting impact on both of us I believe. It has probably underpinned over 30 years working within Financial Services Life Insurance and helping protect people.

As I mentioned earlier, whenever a tragedy strikes often both family & friends ask “is there anything we can do to help?”

This is a loaded question, as in reality many people are just too busy with their own everyday lives. Apart from going to that person’s funeral or calling the bereaved to ask ‘how are they doing?’

Perhaps emotionally it could really mean ‘Can you please help me look after my 3 young children, as I just cannot cope today’ or financially ‘Can I please have £1,500pm every month to help pay all my bills for next 15/20 years’.

Life Insurance Martin Lewis may concur can never ever replace a loved one. However, we all live in a world where money is needed to feed us, keep a roof over our heads & family, clothed & warm.

So, if you are online trying to seek the guidance of Martin Lewis on Life Insurance, how do you work out how much life insurance is truly needed or enough ?

In  Conclusion

You pay’s your money and takes your choice of perhaps one or all product area combinations. How much can you afford to set aside each week to help protect yourself, family and loved ones ?

If you can afford it, my own thoughts aside from MSE Life Insurance formula are ideally following the same principles as I mentioned above.

• Lump Sum > Repay any mortgage & debts, cover funeral costs
• Income  >  Help cover your monthly bills
• Lump Sum > Back up for holidays, education, emergencies

Cancer & Bling

Having written this article review, Martyn would also like to help promote my cousin’s darling late wife Lisa Brenner and her very uplifting book called ‘Cancer & Bling’.

Lisa sadly but amazingly battled various types of Cancer 11 times over a period of 21 years.

Lisa used her undoubted experiences to also campaign for better treatment and raised awareness of the need for much earlier cancer diagnosis. She was also instrumental in successfully campaigning for the cancer drug Herceptin to be made available on the NHS. She even appeared on Sky TV News whilst having chemotherapy in 2000.

We have talked for hours about both these 2 tragic subjects that shaped his life, as it was my teenage cousin Russell who lost his Father ( My late Uncle, who I first mentioned above re my Auntie ) when he was far too young.

Russell also then later sadly lost his lovely wife Lisa Brenner to cancer and the impact that had to both himself and his young son Marc. Russell knows only too well the importance of having some Life Insurance or Critical Illness or Income Protection or Private Medical Insurance. 

https://www.helenrollason.org.uk/2017/12/14/cancer-and-bling/

https://stclarehospice.org.uk/news_posts/lisas-book-help-cancer-patients-st-clare/

I hope you found this article on Martyn and Martin Lewis MoneySavingExpert Life Insurance advice interesting & thought provoking. Does Martin Lewis need life insurance? 

Please contact us for:

• No obligation Professional Broker advice
• Compare Leading UK Insurers Online - Quotes 15 Secs

Take care of yourself and loved ones

  Martyn Spencer | Financial Adviser @ Uk Life Insurance Quotes

Review on: Martin Lewis Life Insurance (MSE) Money Saving Expert ~ for more information visit 

www.moneysavingexpert.com *

( * Note: You are now leaving the regulated site of Uk Life Insurance Quotes. Neither ourselves, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.)

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