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MoneySavingExpert's guide to over 50s life insurance, written by Martin Lewis and last updated on 2 March 2026, is strongly critical of these plans. He says that for many people they are "a seriously bad bet", mainly because you can end up paying in more than the plan will ever pay out. MoneySavingExpert's separate life insurance guide goes further and says it thinks most people should avoid over 50s life insurance.
That does not mean MoneySavingExpert says over 50s life insurance is unsuitable for everyone.
Its advice is to understand the maths, compare alternatives and recognise the particular circumstances where guaranteed acceptance cover can still make sense.
Sources: MoneySavingExpert, Beware over-50s' life insurance, by Martin Lewis, last updated 2 March 2026, and Cheap life insurance, last updated 28 August 2026. Checked by 50Life on 30 September 2026. Read the full guides on moneysavingexpert.com.
Why is Martin Lewis critical of over 50s life insurance?
The main issue is the relationship between what you pay and what the policy pays when you die.
Traditional over 50s cover usually has a fixed monthly premium and a fixed cash payout.
If you live for a long time, you can continue paying premiums even after the total amount you have paid exceeds the eventual payout.
MoneySavingExpert gives an example, using March 2026 figures, of a 65 year old paying £7 a month for a SunLife policy with a £1,159 payout.
At £7 a month, the amount paid into the policy reaches £1,159 after around 14 years. Someone continuing to pay after that point would have contributed more than the policy is due to pay out.
This is one of the biggest weaknesses of this type of insurance and something anyone considering a policy should calculate for themselves.
What calculation does MoneySavingExpert recommend?
The calculation is simple.
Take the cash payout and divide it by the monthly premium.
To use our own example, suppose a policy pays £6,000 and costs £25 a month.
£6,000 divided by £25 equals 240 monthly payments.
That is 20 years.
If you continued paying £25 a month for longer than 20 years, your total premiums would exceed the £6,000 payout.
After 20 years of paying, your premiums would be more than the £6,000 payout.
Illustration only, not a quote. The cover your premium buys depends on your age, smoking status and the insurer. Some policies stop taking premiums at a certain age.
MoneySavingExpert's second step is to compare that point with how long you are likely to live. Using Office for National Statistics averages, its guide says a 65 year old man in good health could expect to live to about 85 and a woman to about 88.
On those averages, in its £7 a month SunLife example, a man would pay in about £1,680 and a woman about £1,932, for a payout of £1,159. It adds that not everyone lives an average life, so factor in your own health and your family's history.
In our view, this does not automatically make the policy unsuitable.
Insurance is designed to protect against uncertainty. If you died after only a few years, the policy could pay significantly more than you had contributed.
The calculation simply shows the point at which the financial relationship changes.
Does MoneySavingExpert suggest saving instead?
For many people, yes.
MoneySavingExpert's guide says that, for many people, simply putting the money into a top savings account or cash ISA each month is a better option.
Its March 2026 example calculated that a 65 year old saving £10 a month into a cash ISA paying 4 per cent could build up the equivalent policy payout almost four years sooner.
There is an important difference, though.
With traditional over 50s insurance, premiums normally belong to the insurer once paid. Cancelling the policy after the initial cancellation period normally means losing what you have already contributed and receiving no future payout.
If someone starts saving today and dies shortly afterwards, they may have accumulated very little.
A life insurance policy could pay out more than you would have saved by then.
But guaranteed acceptance plans normally have an initial waiting period, often 12 or 24 months, when death from natural causes usually means a refund of premiums rather than the full payout. Some plans provide accidental death cover during an initial waiting period. Check the policy terms.
MoneySavingExpert acknowledges this weakness of relying solely on savings.
What does Martin Lewis say about people in poor health?
This is where the MoneySavingExpert view becomes more balanced.
Guaranteed acceptance over 50s policies generally do not require a medical examination or detailed health assessment.
Martin Lewis says that if you are likely to die sooner than average, for example because of a diagnosed medical condition, heavy smoking or serious obesity, these plans can be a good gamble, because you do not need a medical even though your life expectancy may be much lower.
In our view, someone who expects to have difficulty getting ordinary life insurance may therefore have a stronger reason to consider guaranteed acceptance cover.
The key is not to assume that poor health automatically prevents you from obtaining standard life insurance.
It can still be worth checking what medically underwritten cover is available before choosing an over 50s policy.
Related guideOver 50 life insurance with no medical questionsMoneySavingExpert also warns about cancelling and missed payments
MoneySavingExpert points out that these policies can become difficult to walk away from after you have paid into them for years.
MoneySavingExpert says that if you stop paying, all past contributions are lost and no payout is due. Policies normally include a cancellation period. Check the policy terms for the period that applies.
For someone who already owns a policy, Martin Lewis does not simply say to cancel it.
The guide suggests looking at the decision from today onwards. Compare how much more you are likely to pay from this point with the amount the policy will eventually provide.
That is a more useful calculation than focusing only on money already paid.
MoneySavingExpert also warns about missed payments. Its guide says that if you miss a payment you usually have up to six months to pay the missed premiums and keep the policy going, but if you die while premiums are still unpaid, nothing is paid out.
Setting up a direct debit can help avoid this. Check the policy terms for what applies to your plan.
What about inflation?
MoneySavingExpert also highlights the problem of a fixed payout losing purchasing power.
If you take out £5,000 of cover today and the payout remains £5,000 for the next 25 years, it is unlikely to buy as much in the future.
This matters particularly when the policy is intended to contribute towards funeral costs.
Only a few providers offer inflation linked options, and MoneySavingExpert notes that the amount you pay in also goes up. In the example it gives, the monthly premium rises each year by one and a half times the rate of RPI inflation, while the payout rises in line with RPI.
Related guideWhat is fixed life cover for over 50s?Does MoneySavingExpert recommend any over 50s policies?
Its guide lists the insurers that offered the highest payouts for the lowest monthly premiums in its March 2026 example quotes for a 65 year old non-smoker, as a good place to start.
MoneySavingExpert says there is no single best provider because the result depends on your age and how much you want to pay each month. It recommends comparing quotes rather than simply buying from the best known advertiser.
That is an important point.
Two policies with the same monthly premium can provide different payouts, payment periods and waiting periods.
The provider with the most recognisable advertising is not automatically offering the strongest policy for your circumstances.
What should you take from Martin Lewis's advice?
The central message is that, for many people, these plans are poor value, so do the sums before you buy.
Martin Lewis also says they can suit some people, for example if poor health means you are likely to die sooner than average.
Our suggestion: before choosing a guaranteed acceptance plan, check whether medically underwritten life insurance is available to you, as it may give you more cover for your money.
If you would like help checking what cover is available to you, speak to a qualified UK life insurance adviser who can compare options available through their panel. 50Life introduces you to the adviser and does not itself give personalised advice. The adviser may use a selected panel and does not necessarily compare every insurer or policy in the UK. 50Life is free to use. We may receive a payment if you take out a policy following our introduction.
MoneySavingExpert's warning is useful because over 50s life insurance can look extremely simple. The important figures are not just the monthly premium shown in the advert. They are the total amount you could pay, the amount your family could receive and the conditions attached to that payout.
