Martin Lewis is one of the UK’s most trusted financial experts and consumer advocates. As the founder of the hugely popular MoneySavingExpert.com website, Lewis offers guidance to millions looking to manage their money better. But what does this financial expert specifically recommend when it comes to life insurance?
Who is Martin Lewis?
For the uninitiated, Martin Lewis is a journalist and television presenter who specializes in consumer finance topics.
He founded the MoneySavingExpert.com website back in 2003, which has grown into one of the UK’s biggest consumer finance websites.
Lewis dispenses financial guidance and money-saving tips across his sites and through regular media appearances.
With his witty style and relatable advice, Lewis has become a household name.
He’s known for his candid, no-nonsense approach to discussing often confusing financial topics like credit cards, mortgages, insurance, and more.
Why Consider Life Insurance?
Life insurance provides financial protection for your loved ones in the event of your death. The lump sum payout can help cover things like:
- Paying off a mortgage or other debts
- Replacing lost income for dependents
- Funding university costs for children
- Covering funeral expenses
For most breadwinners with financial dependents, having life insurance brings peace of mind – knowing your family would be financially stable if the unthinkable happened.
Martin Lewis “100%” Recommends Life Insurance
So what does consumer champion Lewis himself recommend when it comes to life cover? His guidance is clear:
“If you’ve got people who depend on you financially, I think you 100% should have life insurance.” – Martin Lewis
On his MoneySavingExpert site, Lewis strongly states that life insurance is a must for:
- Anyone with children
- Homeowners with a mortgage
- Unmarried partners who depend on each other financially
- Those financially supporting older relatives
The bottom line is if others rely on your income, Lewis firmly believes life insurance is a necessity to secure their financial future in your absence.
How Much Life Insurance Do You Need?
According to Lewis, there’s no one-size-fits-all approach to determining the right level of life cover. The amount you may need depends on your specific financial responsibilities.
Factors that dictate ideal coverage include:
- Size of your mortgage: You may want enough to fully repay the outstanding mortgage loan.
- Number of dependents: More dependents means higher required cover.
- Level of income: Higher earners need larger payouts for family stability.
- Existing assets: Significant savings reduces needed cover.
To estimate your needed payout, Lewis points to helpful life insurance calculators. These tools can provide quotes tailored to your unique liabilities.
What Type of Policy Does Lewis Recommend?
Martin Lewis strongly advocates getting level term life insurance. Unlike pricier whole and universal life policies, level term offers affordable protection at guaranteed premiums for a set period of time (often 10-30 years).
Lewis breaks down the pros of level term life:
- Cheaper: Much lower premiums than permanent insurance due to limited policy term.
- Guaranteed rates: Your premium is locked in and won’t increase.
- Guaranteed payout: Insurer must pay claim if you die during the term.
- Customizable terms: Choose a term length matching your needs.
- Convertible: Can convert to whole life later if desired.
The one downside of term life Lewis highlights is that it eventually expires. But for most breadwinners, level term life running through retirement years appropriately matches needs.
How To Get Affordable Quotes
Here are Lewis’ top tips for finding affordable life insurance:
- Shop around: Compare quotes across multiple insurers. Rates can vary hugely between providers.
- Consider your health: Declaring medical issues may raise premiums but can still offer savings over non-disclosure.
- Review lifestyle factors: Premiums are impacted by smoking status, family medical history, occupation and high-risk hobbies.
- Look for promotions: Some insurers offer discounted rates for the first year.
- Check employer benefits: Some companies offer death in service benefits equal to a year’s salary.
Using online comparison services like MoneySupermarket simplifies getting quotes from a panel of insurers. This allows you to find the most competitive rate available based on your circumstances.
Final Thoughts
While it may not be the most pleasant topic, having life insurance is an important part of responsible financial planning – especially for families.
As Martin Lewis vehemently states: “If you’ve got people who depend on you financially, I think you 100% should have life insurance.”
Hopefully this breakdown has provided useful guidance on the types of policies available, how much you may need, and money-saving tips for securing coverage.
While thinking about your mortality may be uncomfortable, take Lewis’ advice and get over it so you can make sure your loved ones are financially protected.
Samuel is a finance expert with over a decade of banking and investment experience. He provides readers with practical, actionable advice on personal finance topics ranging from retirement planning to taxes. Samuel combines his professional knowledge with his passion for writing to make complex financial subjects easy to understand. When he’s not publishing articles, you can find this local dad exploring the city with his family.
