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What's MSE say on Whole Life Policies?
Does Martin Lewis Recommend Whole of Life Insurance?
Review: 11/2025
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Martin Lewis Whole Life Policy Life Insurance MSE Review
The Money Saving Expert
Martin Lewis Life Assurance Policy Types
In this Money Saving Expert Martin Lewis Whole Life Cover Insurance MSE review guide we will look at - these key areas & more...
🔸What's MSE say on Whole of Life Policies? 🔸Does Martin think Whole Life Insurance or Term cover is best? 🔸 Different types of Whole of Life Assurance cover?🔸Top Tips re Whole of Life Life Insurance 🔸 Pros & Cons 🔸 Whom Best to Buy a Whole of Life Cover from...
What's Martin Lewis Whole Life Policy Life Insurance Advice?
Well firstly, as a whole life assurance policy implies - Martin Lewis says 100% 💯 that Whole-of-Life Insurance cover runs out ONLY when you die (instead of a fixed time).
Sounds ideal - So what is the catch of the whole life insurance policy Or what is the downside of whole life assurance - if there are any?
Well, the Money Saving Expert then caveats that these whole of life policies are also usually much more expensive - because they run for life & not for any set term.
So Martin says they are mainly used instead to mitigate inheritance tax bills on death ie; he probably means more affordable for those to consider with wealth.
For a whole life life insurance policy therefore these plans we would add - are not then cheap long term solutions for any young family or couple with children perhaps considering lifetime cover (rather than until the kids leave home).
Alternatively, IF you either take them out much later into life those higher premium costs - OR now have any age related health issues for the Insurers to then consider.
The Money Expert often remarks YES "Life Insurance is a Financial Lifeline" BUT that ultimate choice is yours, IF the monthly cost's worth it to your family and loved ones.
Let's examine as brokers where MSE thinks a life insurance for whole life policy maybe useful cover vs any cheaper insurance options or various other alternatives like funeral plans within the UK marketplace.
What's Martin Lewis Whole of Life Policy on Insurance?
A Whole of life insurance policy - or for the UK market only = the correctly termed ‘whole of life assurance’ policy.
These entire life insurance plans are unique within the UK protection insurance marketplace, as it is a complete life insurance + with no end date as Martin Lewis states.
As such, it offers ongoing end of life insurance policy cover ie; It still pays out even if you were aged 150.
So a Whole Life Assurance policy means = Guarantees it will pay out a lump sum upon death ‘whenever you die’ (rather than IF you died during its term) Or are diagnosed 'terminally ill' - All as per whole life policy Insurers T&C's.
However, we will also go onto to look at some whole of life types, whereby as Money Saving Expert Martin mentions they are 'investment-linked' and various issues this may also cause.
Then to better understand how those lifecover amount payouts & premiums all can vary dramatically we see as brokers - based upon its investment performance & IF that whole life policy type is then chosen.
Because, it may guaranteed to payout upon death BUT if you choose this investment backed plan, you may NOT be guaranteed how much you then have to carry on paying for this whole of life benefit.
The forums on Money Saving Expert re Whole of Life Insurance have been a hot topic on this aspect & the subjects around having a whole of life insurance policy. ie; whole life insurance costs compared to other protection plans.
Ordinarily, Martin Lewis on life insurance whole advice standard principle agrees that it's important IF anyone is reliant upon your Income AND would struggle financially without you around ie; a financial insurable interest.
MSE agrees wholly life insurance is an important topic for you & your family to discuss (but not the easiest one) if you were to die prematurely.
But prematurely here Martin probably means sadly death earlier into life eg; age 30 or 40's & rather than at any ripe old age 80's or 90's?
For example, MSE point out the sad facts (as Martin Lewis himself experienced) that roughly one child per school class may lose a parent - much too early in their young lives.
Martin Lewis Is Whole of Life Worth it?
As Martin Lewis has clearly stated, whole of life plans are generally more expensive.
Why? Well the Insurer 100% 💯 has to payout - even if you live to 100+ years of age - and so charges higher premiums accordingly.
On average UK life expectancy stats indeed shows (in the above graphic) & dependant where you live - it's from as low as early 70's and higher upto mid 80's.
Despite medical advances, few people on average live past age 90. Or indeed fewer up to age 100 and get a birthday card from the Royal family.
As Statista detailed our average UK life span seems to vary widely by 10 years+ from those Postcode Town areas they listed; Insurers are well aware of all this.
But as you will see, typical whole of life insurance costs we find as brokers - are on average over double or more - the cost of an average term life policy upto mid 80's.
Or poignantly, when Martin reviewed those Over 50's plans with no medicals - he said 'You wouldn't buy a lottery ticket if it cost more than the jackpot'
He's not a big fan of these and means that you could be paying in (if you were aged 50) maybe for the next 30+ years ie; more into those Over 50's plans than it's actually worth.
So, we will also look at both whole of life plans + other long term life insurance policy types MSE also review ie; life assurance vs insurance term needs.
Currently, the average UK lifespan is early 80's - although generally a few years earlier for men vs women.
So MSE always take a balanced reviewing all life insurance plans, options which maybe cheaper but all dependant upon your needs. They always say if unsure seek financial advice.
Alternative Insurance plans - which MSE reviewed and you may wish to possibly consider instead here & also given average uk life expectancy. eg; a fixed term life insurance upto age 90.
Therefore as brokers we say when discussing & advising on your various options between life insurance or assurance - 'the choice is always yours'.
Although, Martin Lewis on Over 50's Lifecover also says when reviewing these plans - that nobody may live an average life span ie; genetics or accidents may also come into play.
Martin Lewis Whole Life Policy & Life Insurance Top Tips
Given that, where do you start if you just need life assurance for the family - as to how much life cover should you therefore consider having generally, to help protect yourself & loved ones?
So what Martin Lewis recommends as his general Life Insurance Formula is insure "10 x ANNUAL INCOME" for a 💯 100% Good Rule of Thumb in (2025).
Martin says aim to cover "10 x Main Breadwinners Income" until any kids have finished full-time education or other financial dependants.
If looking however only at whole of life life insurance - then you may feel this basic MSE rule might not fully apply because the kids have all left home - OR if one or both are now retired?
But for example if there is an age-gap between partners OR upon 1'st death their main pension or state pension partly or fully disappears and there is little savings - then there is still some merit (budgets + costs of living permitting).
MSE on Types of Life Insurance Whole of Life?
Money Saving Expert have reviewed some of these whole of life schemes available either direct or via a broker.
So far MSE Martin Lewis' team concentrating more on some of those heavily advertised whole of life policy uk plans than others - which he sees offering poorer value ie; Those no medical Over 50's / Over 60's Lifecover.
- Over 50 Whole Life Insurance: no medical questions, fixed premiums & no investment element
- Guaranteed - Whole Lifecover: medical underwriting questions, non-reviewable premiums & no investment elements
- Reviewable - Whole Lifecover: medical underwriting questions, reviewable premiums via investment backed element*
*MSE: Over 50's Plans - Whole Life Cover
Which Insurers offer whole of lifecover with no medical exams?
So, what does Martin Lewis say about all those heavily advertised Over 50 whole life insurance plans (with no medicals) ie; those insurers who offer whole of life policies with guaranteed acceptance?
Well, overall he is not a big fan of these it seems (no matter which Insurers offers no medical exam policies) or when you are in good to average health.
However, Martin does see their lucrative value IF you are either in poorer overall health or with reduced life expectancy
Note: Smoking & vaper status affects cover and costs for this Over 50's life policy - but that's only the main health risks most Insurers ask.
BUT he is also aware that each insurer has its own underwriting rules on pre-existing medical conditions, IF you do have a complicated medical history & IF you don't want to therefore disclose all your health issues for whatever reasons - and are aged 50, 60 or over 65 etc;
Only then does MSE say an over-50s policy is a viable alternative whole of lifecover with no medical exams - plus there's guaranteed acceptance for those aged up to age 80 or 85.
Which Over 50's Insurers have the fastest application process?
As with most over 50's life companies plans here, you may have to wait 1/2 years after application before full coverage of death from natural causes - mainly because they don't ask medical questions.
We find generally you get less cover with a 1 year wait vs 2 years ie: death by natural causes. Most payout fully their sum assured amounts upon accidental death - with some Insurers offering more here.
BUT for Martin Lewis best Over 50 Life Insurance Money Saving Expert advice, he remarks that many people waste a fortune on this 'no medical' style of whole life policy.
So, as Financial Advisers we would agree here to some extent reviewing his comments ie; over 50 whole life insurance no medical deals are not the best value out there for those in good to average health.
However, MoneySavingExpert says some Over 50's Insurers may offer guaranteed acceptance up to age 80 or 85 - which is useful for some people who've left it later into life & need some type of small fund.
Commenting, Martin Lewis on these Whole of Life Insurance over 50’s no medical plans generally, he says they are often sold to you on the basis of leaving a lump sum legacy or help toward covering funeral costs.
But typically as brokers we see these Over 50's policies often don't offer massive amounts of cover for a legacy anyway ie; it could be around £10,000 or less.
Or alternatively, Insurers restrict the amounts payable anyway per their whole life policy & based on age eg; maximum £50pm premium say allowable or £10,000 maximum cover.
This marketplace is often characterized also by those Insurers offering their no medical Over 50's or 60's whole life insurance with free gifts.
Or TV adverts promoted by some well known current or past TV celebrities, like Michael Parkinson, Cilla Black or Carol Vorderman.
Martin Lewis identifies 4 Main Problems with these types of no medicals whole of life cover schemes.
- The Maths doesn't add up
- These Whole of Life plans lock you in
- Miss One payment and you get Nowt
- Impact of Inflation
So importantly, Martin Lewis on Over 50 Life Insurance he points out that on certain plans, you could potentially pay in more in policy premiums than the life cover value is worth.
MSE says "this type of cover can work out expensive as you have to keep paying in until you die, so your beneficiaries could get back less than you pay in".
Nowadays, we see as brokers that's not always technically true - because on many no medicals whole lifecover schemes the Insurer stop taking the premiums after age 90 or 95 but keep the life insurance coverage going (noting: average UK life expectancy is 10 years earlier anyway).
Note: If you stop paying those monthly premiums for your Over 50's policy mid-stream & before that premium term finishes, he says generally Insurers will cancel your policy + You also won't get back any premiums you've already paid ie; you get Nowt.
Some Over 50's Insurers we have noted however have now started offering a payout promise as a compromise to ensure they abide by FCA rules of treating customers fairly.
So some direct offer Insurers will still pay out at least 1/2 life cover amount claim when you die*.
*This T&C's rule applies only if for example you've cancelled or stop paying after making more than 1/2 your insurance payments - between the policy start of your no medicals Over 50's cover and your Final Payment Date.
Maybe many Insurers changed their life insurance whole life calculator stance here due to campaigners like Martin Lewis & others.
Many people ignore the impact of inflation which Martin also notes, so opt to take only out level policy life cover or because of budgeting reasons into retirement.
But why overall does the MSE expert think these seniors no medical whole life cover policies are a possible waste of your money?
Well, let's have a look at the generic differences between the 2 main types of Over 50's whole of life plans ie; with or without medical evidence.
Pro's and Con's between 'NO Medical' | 'YES Medical' Over 50's Whole Lifecover
Over 50's Life Insurance 'NO MEDICAL' Info (Key Features) | Over 50's Life Insurance 'YES MEDICAL' Info (Key Features) |
| * Poor value for seniors if fit & healthy | Ideal for seniors if fit & healthy |
| * Wait first 1/2 years before fully insured | Fully insured once terms agreed |
| * Some may include Terminal Illness | Terminal illness benefit included |
| * Accidental death only first 1/2 years | Fully insured once deal agreed |
| * Low lifecover levels available | Higher lifecover levels available |
| * No medical questions | No GP health check | Medical questions | Maybe GP health check |
| * Smoking / Vaping rates affects pricing | Smoking / Vaping rates affects pricing |
| * Short application process | Longer application process |
| * Good value if unfit & unhealthy | Lesser value if unfit & unhealthy |
| * Whole Lifecover | Whole Lifecover |
| * Don't want any advice | Don't mind getting advice |
| * Funeral Funding Options | No Funeral Funding |
| * Miss premiums & plan may end | Miss premiums & plan may end |
| * Restricted premiums | No premium restrictions |
| * No investment risks | No investment risks on guaranteed plans |
| * Inflationary risks if level cover | Option to index your lifecover |
| * 1 provider only choice | Choice of Brokers marketplace |
| * Advertised by a Celebrity | Usually not Celebrity advertised |
| * May get a Free Gift or Pen | May not get a Free Gift or Pen |
| * Could pay in more than premiums | Less likely to pay in more than premiums |
| * No premiums after ages 90/95 | Premiums paid for whole life policy |
Guaranteed over 50's plan
MSE: Should I cancel my Over 50's Whole Life Policy?
Martin says that maybe some people with these Over 50's no medical plans (reading their reviews with teeth gnashing) may be asking, "Should I therefore cancel?".
He says that the answer isn't that simple. Because if you stopped paying now, all past contributions will be lost - which is the general rule for many of these schemes.
However, we would add if you maybe in good to average health - it could be fully underwritten (or medical questions) whole life assurance may offer a better value bet.
We have been able as brokers to sometimes secure better whole of life policy uk deals for some people in this situation & replacing their no medical plan.
Those who perhaps believed their easiest Over 50's or 60's lifecover option was just simply going direct to a Provider vs going via a Broker and answering some medical questions.
Either way we would advise never cancel anything until you've at least sought financial advice - which is Money Saving Expert general rule on financial education.
So let's look at other whole of life insurance policies available that Martin Lewis has touched upon - ones that do ask health & lifestyle questions to apply.
Martin Lewis explains that whenever you buy life cover, you will be given 2 choices of monthly payment:
- Guaranteed Life Insurance – your Insurers will never change the price over the lifetime of that policy
- Reviewable Life Insurance – often cost less at first, but your insurers can hike costs later on, so what initially seems a cheap deal now BUT may prove costly into the long term.
So let's firstly look at whole life insurance coverage via guaranteed premiums option - which Martin prefers generally with the different types of life insurance available, as you know where you are.
What Whole Life Insurance policies include terminal illness cover?
Both whole of life insurance types do offer a terminal illness cover payout - which usually means diagnosed less than 12 months to live.
However, if you chose to place those plan benefits into trust & decided to take this terminal illness monies option for yourself (rather than leave within the trust) it could then be subject to IHT Inheritance Tax.
As such, Martin Lewis always suggests you seek financial / legal advice beforehand as to which option works best in your own situation.
*Whole of Life Assurance (Guaranteed Premiums)
The key features of this type of whole of life policy quote - it guarantees level premiums & cover for the entire lifetime of the policy.
Also, unlike those Over 50's plans as discussed above (which Martin Lewis is not a big fan IF you're in average to good health) these do require full medical underwriting questions at application.
Note; It may then require a GP report or nurse medical first before the Insurers offers any insurance terms, especially if you any pre-existing conditions.
BUT once terms are offered & accepted - you are then covered from Day 1 (not after Year 1 or 2 like many Over 50's plans) offering immediate peace of mind.
These plans can be set up on either a single or joint whole of life policy basis.
If it's joint then your 2 main options here are via a joint life 1'st death or maybe 2'nd death insurance plan (often for Inheritance Tax purposes).
The typical lifecover amounts to insure are often from £5,000 upwards - to £££ millions if covering say IHT issues or leaving large legacies.
Importantly with a guaranteed life insurance whole of life policy, even as you age & get older, your premium is still fixed.
Unless you chose from outset the indexation option to help offset rising costs whereby both the premium & cover may go up annually by say RPI.
It provides a death or terminal illness benefit but crucially here - does not accumulate any cash-in surrender values.
As such, it does not end until either the policyholder dies or stops paying their premiums (for whatever reason).
In that instance, as it has no cash values the whole of life policy & cover would then just lapse.
There would be no return of premiums either so no possibility of getting back what you paid in eg; Even if you've paid it for 50 years+
This is unlike those Over 50's plan where the Insurers state they will maintain your life cover after age 90/95 - but stop taking premiums.
So unless you had a valid complaint which MSE explains - you need to keep paying the policy premiums up & paid 'for ever and a day' because it is an entire life insurance.
Given that - as brokers we find many people start to look at these types of full life insurance plans in their late 60's or 70's (rather than in their early 20's).
In conclusion - these could be a much better bet here for those people simply looking for rest of life assurance with fixed premiums.
Plus those looking to insure with large lifecover amounts (than those advertised no medical Over 50s or 60's plans which may offer around £10k)
BUT converse to Martin Lewis on Over 50's lifecover comments being better for those if in poorer health or shorter life span - Here better, as long as you are in overall average to good health.
Let's turn now to where those whole life insurance costs are now reviewable - so not guaranteed.
Which Whole Life Cover is Best - Guaranteed or Reviewable?
*Whole of Life Assurance (Investment / Reviewable Premiums)
These are generally your focus - If you are looking at which whole of life insurance providers plans offer flexible premium options.
The key features of this type of whole of life policy quote - the premiums are reviewable. This means they could change & increase for the entire lifetime of the policy.
The reason they are reviewable is because they are usually investment-backed as Martin Lewis point out. Those policy reviews could be at least every 5 years or sooner.
Typically in the past, and maybe in their own homes by the travelling insurance salesman, people were sold these types of whole of life policy uk plans - whereby it could be saving scheme also.
Perhaps sold on those looking if there are whole of life insurance plans that built a cash value quickly & rather than as a long term life policy.
How does this whole life policy work?
Well their whole life policy's cash value accumulates over time & could be used - mixing both investments & lifecover into one plan. Abit like an ever lasting endowment savings policy.
But they were structured such that in reality as you get older, the life cover logically costs more ie; those mortality death risks are higher for a 80 year old than a 60 year old.
It would all depend on how the plan was set-up and then reviewed. In other words, you always had the option to pay alot more in from outset to help counter-act that ageing process for insurance risk.
So, although perhaps many were sold as being alot cheaper initially than a guaranteed premium plan eg; £100pm vs £250pm - Over the course of time & at all their premium reviews, Insurers may either ask for massive price hikes or lower the lifecover amount.
As such, on the Money Saving Expert forums are many people who feel very burdened or trapped with their reviewable whole of life plans.
For example, as brokers we have seen someone take out say a £400,000 2'nd death whole life policy insurance investment-backed reviewable to help cover a IHT tax bill for £400,000 - starting at a reasonable £100pm.
No use being paid upon the 1'st death - as that won't cover their potential tax liability, as their tax accountant points out.
BUT 30+ years later that same cheap £100pm premium - would now only buy them £25,000 lifecover paid out on the 2'nd death ie; £375,000 down on covering an IHT bill.
Plus now even though one of the parties has died - it still requires ongoing premiums and maybe more lifecover reductions at review, even if that 2nd person lived until they were aged over 100+
Either because it was set-up on a cheap basis or they refused to pay the large price increase and feel missold their whole life insurance.
Note: these Whole Life Policy Life Insurance plans investment backed - were often sold by various UK Life Insurance Companies that no longer have a high street brand presence eg; United Friendly, Royal Liver or Scottish Provident.
It's then left to those main Insurance administrators like Phoenix Life (a company who now deals with lots of older Insurers plans) reviewing your old whole life life insurance policy.
All MoneySavingExpert sums up here is that they are usually expensive AND you could still be paying for this policy even after your mortgage (or other) debts have cleared.
In conclusion - Martin has said before that whole of life insurance types, that builds up a cash value do tend to be poorer value for money for an average customer.
In the USA these are often called 'permanent whole life' + 'flexible whole life' or 'universal whole life' with Dave Ramsey and Suze Orman (their own US-Style Martin Lewis money saving finance experts) arguing that these whole life insurance plan types with their investment basis issues are also bad value for money.
They are both not big fans of whole of life policies often preferring term life instead. However, their whole life insurance schemes may operate differently than ours - so we're not comparing like for like.
*We do not advise on these investment backed unit linked style whole of life plans - and they are mainly sold via IFA's.
Martin Lewis on Whole Life Policy Life Insurance
Martin Lewis Whole Life Policy Life Insurance for IHT?
*What's the best Whole of Life policies for Estate Planning?
The Money Saving Expert Martin says YES, there are various life policies for covering Inheritance Tax (IHT) on your estate whenever you die. Or any lifetime gifts you've made.
So apart from looking at Martin Lewis on Whole Life Policy Life Insurance for IHT, MSE give 3 examples of this type of IHT life policy - to help protect against Inheritance Tax bills.
Life Insurance plans which may help protect your beneficiaries in the event they may have to pay IHT tax OR on any gifts received from you...
In other words, if you died within 7 years of making a single gift there is % tax to pay.
Note: 'Gift Inter Vivos' is a type of decreasing lifecover Martin mentions - that helps mirror those IHT tapering relief tax rules over 7 years and is ideal to cover single gifts.
However, if you intend to make several large gifts within your lifetime - your tax accountant may say it could be simpler to just take out one IHT life insurance whole life calculating the risks under a single umbrella rather than lots of IHT plans eg; should there be any health changes and whilst younger means cheaper. Perhaps making the plan index linked.
All plans ideally should have guaranteed premiums which he prefers for certainty, rather than reviewable.
Typically we would add as brokers, the IHT life assurance policy may need to be set up either on - a single life basis or alternatively joint life 2'nd death via whole of life cover (...rather than 1'st death - although there maybe reasons for setting up this way).
Typically 2'nd death whole life insurance costs for IHT are generally much cheaper than 1'st death - because the insurers receive your money for longer.
However, MSE also rightly state that insurance IHT policies like these should all be arranged in such a way that they don't inflate the value of your estate (and any associated IHT bills) ie; into trust.
We recommend you firstly speak to a tax accountant or specialist here - if calculating the values of your own estate & before requesting any IHT protection insurance advice.
Some of these policies are looked at further in our Martin Lewis on Life Insurance review.
Given as mentioned already that the average life expectancy for UK men is currently around 80. Plus a few years more for UK women.
So, setting up an appropriate or affordable IHT whole life assurance in suitable time, maybe harder IF you have any pre-existing health issues.
Although as MSE says not everyone lives an average life span when he's reviewing Over 50's lifecover.
However we would add importantly, the much lower levels of lifecover typically offered on over 50's or over 60's plans (typically around £10,000) will definately not be the answer here to solving any major IHT tax issues, merely helping perhaps to just cover final expenses costs.
NOTE: as Brokers we find that most people if looking at Whole Life Assurance for Inheritance Tax solutions - may probably be over age 60 or 70.
In the past, they were both younger & fitter - so have been used to perhaps paying much lower cost premiums for their basic mortgage protection & family life insurances.
As such, we say be prepared to pay substantially more in 2025 - for help protecting your estates against IHT for your loved ones via lifecover.
Importantly, that getting the right life assurance cover here re IHT - ensures any gifts, estate or legacy protection do what you wanted ie; pass money with maximum certainty.
Martin doesn't examine this but the MSE forums are also active on Inheritance Tax and the subject of which is best here - Whole Life Policy Life Insurance vs Term.
Martin Lewis always says seek professional tax & legal advice if unsure - So Whole of Life Assurance done incorrectly here could mean an unexpected IHT tax bill surprises and unintended results for their loved ones.
Again, we also recommend you speak to a tax accountant or legal specialist here - if looking at the overall values upon your estate planning & gifts before requesting IHT protection insurance advice.
Whole of Life Insurance IHT - MSE Top Tip:
Whole of Life 'written in trust' Avoids Tax Issues?
Martin Lewis says if you die with an active life assurance policy, then that payout may also form part of your estate.
Which all could mean he strongly advises - it is then hit with another "huge whack of Inheritance Tax"
So Martin points out that it is important to avoid further IHT tax bills by writing that whole life policy into trust - especially if it is done at the time the life assurance plan is taken out.
If the policy is written in trust, the life assurance pays out directly to your loved ones & dependants.
Therefore, it never becomes part of your estate, which helps avoids both inheritance tax and often speeds up the payout re probate delays.
As brokers we would add this maybe unwittingly - especially if the whole idea was to cover IHT costs.
Most insurers do provide free legal trust forms here but please seek legal advice if unsure about your own situation.
Our broker Top Tip: As whole of life assurance application trusts with some Insurers could still be paper based - ensure this aspect is double checked and witnessed before starting off the policy.
Is Martin Lewis Whole Life Insurance vs Term?
Martin Lewis comments that level term is the simplest type of life insurance plan.
Martin says you will pay a monthly policy premium which continues until it either 1] pays out on death 2] pays out on terminal illness 3] the policy ends.
But unlike a whole of life policy - You must now also choose the 'term' of the insurance plan in years that you want the life cover to last – eg; 25/30 years.
That term insurance cover period will remain fixed for the whole duration of the policy & then ends with no surrender value (if not claimed).
So this is unlike those 3 main whole of life plan types MSE has reviewed already:-
- Over 50's & 60's Whole of Lifecover (no medicals)
- Whole of Lifecover (guaranteed premiums)
- Whole of Lifecover (investment linked)
Therefore comparing Whole Life Insurance or Term cover is unlike a whole life policy that's for your entire life.
The more cover you get + the longer the term you want, the more that policy costs. The older you are plus health & lifestyle will also affect those costs.
Other types of life insurance policy that Martin mentions that usually run for a set term vs whole of life are family income benefit & decreasing term for a mortgage.
People may typically opt for a term vs whole of life insurance because they only wish to insure for a certain time period - for example, their mortgage over 25/30 years or family until the kids leave home.
The options are level or index linked, single or joint life insurance and which could be set up 1'st or 2'nd death.
But unlike a whole of life policy MSE says that you usually can't remain covered past the age of 80, though this varies.
Not sure here as brokers - if on a Whole Life vs Term Life Insurance Martin Lewis means the maximum age at entry is age 80 - because you can currently take out a term plan often upto age 90.
In fact, in the past there were a few UK insurers that actually offered brokers a term life cover upto age 100.
Having said that, for some people on whole life insurance or term upto age 90 - they may feel a back up plan to that life stage is enough + given average UK life expectancy maybe several years earlier.
Understanding that term life cover plan then ends 100% at age 90. So in comparison - a whole of life plan could be called in contrast a 90+ or 100+ plus Life Assurance, for those very few people who make it into their 90's and beyond?
YET given average UK life expectancy is early 80's and asking is the extra costs of whole of life insurance worth it vs term insurance options we say - you pays your money & takes your choice.
Convertible Term & Whole Life Insurance?
But what IF you could somehow combine the benefits of both plans ie; an option to convert your term life plan into whole of life insurance be worth it?
Convertible Term Life Insurance is unique in that it has the 'hybrid option' to switch from a more affordable term policy and its lower costs - into a whole of life insurance.
Importantly, if you later exercise the option to convert it into a new whole of life policy - it's without the need for any new medical underwriting or health examinations.
Insurers may allow a customer to choose to convert all (or part) of their term life cover sum assured into a new Whole of Life Assurance policy.
This can all be with that same provider and at any time (or multiple times) but it must be done all before the end of the policy term (as per their T&C's).
*Note: This is all subject to the providers maximum age at point of conversion and if written in trust. Not all insurers offer this type of convertible term life policy.
This ‘conversion option’ policy has been around for many years, but is often overlooked by some brokers.
Or indeed some of those large comparison websites quoting online term life insurance deals.
Maybe because it costs that little bit extra - and if compared like for like would be at the bottom of their price tables & so ignored - when some customers maybe just looking for those cheapest lifecover deals.
Martin Lewis and the MSE team don't delve much into this particular type of term insurance plan that can convert into whole life cover - but there are MSE forum questions on convertible term insurance.
Benefits of Convertible Term into Whole of Life?
The biggest advantage of a convertible term - is that it removes future health concerns as a factor in obtaining future life cover.
This is especially useful IF you or your partner's health declines after taking out the term policy.
For example, they are diagnosed with any life shortening conditions like MS or diabetes during the term of their policy.
As such, they choose to utilise their conversion option to whole of life and without medical evidence - to maintain cover irrespective of their health.
Effectively, you are helping protect your current health risk rating when you are younger and healthier ie; guaranteed future insurability.
If we look at an example here if somebody has a joint life 1'st death convertible term policy.
When they convert their plan, they can choose to have their new whole of life insurance policy now on either one or both lives assured;
So whether they want their whole of life policy to be paid as follows...
- 1'st death for family cover eg; longer period life cover well into retirement
- 2'nd death basis eg; help protect any future IHT tax liability
- 2 x seperate deaths eg; to help meet both funerals or each leave legacy's.
Alternatively, use it for help towards paying off equity release or lifetime/RIO mortgages.
you could phase this conversion at different ages and for different lifecover amounts (upto the original total life sum assured under the term policy)
This can provide added flexibility - if your circumstances do change and make that premium increase over a standard term plan abit more acceptable?
Disadvantages of Convertible Term vs Whole of Life?
It is abit more expensive to start with against a standard non-convertible term life plan premium - by average 20% all dependant on Insurers deals and age, health + lifestyle.
Importantly, you must pay the going rate of the Insurers whole of life insurance policy costs (as that time of conversion).
For example, if you took out a joint convertible term plan from age 30 upto age 70 - and this costs say £20pm vs whole of life premium £150pm if comparing back then like for like.
You decide later to then convert into a joint whole of life policy at age 50, because the lady was diagnosed with cancer aged 49 - but now that same Insurers premium is quoted over £250pm.
No, she didn't need to provide any further medical evidence here (even with her cancer diagnosis) but its now £100pm+ more costs - because you're both 20 years older.
OR they could have chosen to just insure her alone - via that Insurers conversion option if available (which would have been cheaper).
Plus, it could be the Providers no longer offer a whole of life assurance policy at the time of conversion - thus making those original convertible plan terms void.
So it all boils down here to getting financial advice here or not, as Martin Lewis always point out. If you are interested in this hybrid option - please contact us.
Whilst the use of this option within this policy is great and provides control + flexibility - people can forget they even have it!
How much Life Insurance?
Martin Lewis ordinarily agrees that life insurance is an important topic (but not the easiest one) for you & your family to discuss, if you were to die prematurely.
But for a whole of life insurance policy you may not feel that would be premature death - but into a ripe old age.
Given that, where do you start as to how much life cover should you therefore consider having - to help protect yourself & loved ones if you decide whole of life isn't for you?
So as mentioned above - Martin recommends as his Best Life Insurance Formula is to insure "10 x ANNUAL INCOME" for a 💯 100% Good Rule of Thumb in (2025).
Martin says aim to cover "10 x Main Breadwinners Income" until any kids have finished full-time education or other financial dependants.
Martin Lewis says generally about life insurance (not specifically whole of life assurance) - that it is worth insuring that any life policy types should also help to cover these following 4 Key Finance items:
- Any Outstanding Debts that would need to be paid off ie; include any mortgages, unless they are covered by a separate life policy already.
- Immediate Outgoings ie; what your dependants would need to regularly pay like rent & bills
- Future Spending you may have wanted to make ie; university costs for your kids
- Any Additional Expenses that your death may then trigger ie; funeral costs.
They do point out that this 10 x the highest earners annual income may perhaps seem a high amount, but they say it is likely to then leave enough money (after the impact of rising inflation) to help cover mortgage repayments, expenses or any ongoing childcare costs.
Also check out whether work offers you 'death in service' which could be used into this overall calculation. This could be a cost effective option (whilst you work via that employer).
Their basic life insurance calculator Money Saving Expert formula - states it could also go some way to help supplement the incomes of those left behind ie; if they had to unfortunately then leave employment. For example, to care for any dependant children or relatives.
Alternatively, other finance experts like Martin Lewis for example in the USA - Dave Ramsey recommends 10/12 x annual income BUT for Suze Orman she recommends 20 x salary when looking at family life insurance protection.
Whole of Life Interest Only Mortgage Protection?
Some people may have an interest only style mortgage (and are just making interest not capital repayments) OR perhaps in retirement no payments at all via Equity Release mortgage.
They maybe interested in a Whole Life Policy Life Insurance vs Term because potentially they may never repay their capital and wish to have entire life insurance protection?
As brokers, if we come across this scenario & although a more expensive option, we may ask if someone ever intends to sell their property & downsize taking all the equity.
As Martin Lewis Whole Life Policy Life Insurance rightly points out, you will still be paying for this policy - even after your mortgage (or other) debt has cleared.
So you may decide here that's not the best way forwards.
MSE: Whole of Life Cover vs Funeral Insurance?
If only concerned about taking out whole life policy for covering funerals then MSE have also reviewed pre-paid funeral plans.
As they say, a prepaid funeral plan helps you pay towards your own funeral in advance.
It helps lock into a fixed price today for whatever those rising funeral costs maybe into the future - potentially saves your family both the stress and expenses whenever you die.
But Martin Lewis comments these types of plans often don't cover ALL funeral costs, so check what is or isn't included.
In other words, Martin says watch out for all those extra costs NOT included in a funeral plan.
For example, those biggest costs unlikely to be covered by any prepaid burial plan are burial plots and headstones.
These can easily cost your loved ones £1,000s extra whenever you die.
MSE says that those Over 50s life insurance types are also sometimes paraded as funeral plans, but they are not.
He strongly remarks - If any 'funeral plan' seems like an over-50s payment model, avoid.
Who's Martin Lewis Money Saving Expert?
Background: Who is the highly respected Martin Lewis OBE & CBE?
Well he is a very successful Financial Reporter & Money Expert, and the founder of the well known UK consumer website Money Saving Expert.
He also has his own current affairs TV Money Show on ITV. This was all initially broadcast after all the London Olympics back in autumn 2012.
Martin Lewis is now often seen on TV commenting on current financial matters & affairs and BBC podcasts.
Or daytime TV like This Morning Martin Lewis being the popular go to person for all sound money advice including Martins Money tips on most life assurance types.
In 2012, his popular Money Saving Expert website was also sold to The Money Supermarket.Com group for reportedly £87 million.
Since 2015, Martin Lewis remains executive chairman and in these challenging times - all round UK Consumer Champion & Finance Guru still in 2025.
Some of these Martin Lewis' Money Management books shown - are all therefore well worth a read, especially in this ongoing cost of living crisis.
Pro's & Cons of Whole Life Insurance Policies?
As brokers, we have taken Martin Lewis' overall Top Tips and thoughts here on both Whole Life Insurance Policies vs Term Insurance in general.
We therefore summed up the 7 main Pro's & Cons based on those 2 different types for underwritten whole of life policies (that ask medical + lifestyle questions).
Pro's
- Life Long Lifecover = Peace of Mind
- Guaranteed Payouts on Death - whenever it happens
- Cover towards Funeral costs
- Leave a legacy for your Family
- Help paying IHT Inheritance Tax Bills
- Surrender values - with investment backed plans
- If written in trust - money will help stay outside of estate
Con's
- Premiums generally more expensive than term life cover
- No cash in values - with guaranteed premium type plans
- IF you stop paying premiums - your plan may end
- Likelihood of regular premiums changes - with investment backed plans
- Potential Lifecover changes - with investment backed plans
- If not written into trust - money will swell the estate
- Different types of plan means - you should compare all
Which Insurers are best for Whole Life Policies?
Some people ask: What are the top-rated whole life assurance providers for estate planning? Can I get whole of life insurance with guaranteed payouts from Top UK Life Companies?
Well Martin Lewis Whole Life Policy Life Insurance does not review this aspect - but there are actually now only a few UK Insurers in 2025 that do offer these types of whole life assurance product (whereas in the recent past there were many more like Scottish Widows or Liverpool Victoria LV= ...but they now only offer term insurance options).
The TOP 5 UK Providers for underwritten whole of life insurance are currently:-
As always and especially here - Martin Lewis says if unsure, ideally speak to a financial advisor to ensure you choose the right type of whole of life cover.
Money Saving Expert as you are aware are impartial - so may review but don't promote or support any particular products.
With investment backed plans, you must speak to an investment IFA vs guaranteed plans - to get full advice on and understand those different risks involved.
This is entirely apart from those numerous advertised Over 50's or 60's no medical schemes - of which there are many Providers (sold usually without advice & Martin Lewis isn't a big fan of).
These types of whole life plans only - could all be either offered direct by your Bank, Building society or Supermarket. Or alternatively via the Post office, Friendly societies or Credit unions.
MSE Conclusion: How to Best Buy Whole Life Insurance?
Money Saving Expert website is always speaking about saving costs & getting the best value, or cheapest deals.
Whilst this may seem true, the whole life insurance comparison marketplace is alot more limited than term insurance ie; providers who offers whole of life insurance with affordable monthly premiums.
As such (as discussed above) often buying what appears to be the cheapest, sometimes could work out the most expensive, in more ways than one.
So firstly for money saving expert best whole of life insurance hints, let's look at the 3 main ways you can buy most types life insurance.
1] Execution Only Sales
Money Saving Expert attempts to educate people about many financial matters. Apart from going direct to the various Insurers, they suggest the cheapest life assurance options are generally via an online 'execution only' discount broker.
MSE says you must pay a fee first to that Company to access their services eg; MSE have recommended in the past using Cavendish online, Moneyworld, Moneyminder, Howden etc;
However, note cheapest here means you also won't get any advice or be speaking to anyone ie; No comeback if what was chosen by yourself, direct via their website, was not appropriate to your ongoing situation so probably no real rights if you feel your were mis-sold.
For example, you do not include any rider benefits onto your protection policy to help cover your plan being self employed & are then off work with a long term illness or accident.
2] Non-Advised Guidance
Then there are also other life assurance sales agents they mention who may operate as FCA regulated brokers but via non-advised sales'. Now this part gets abit more confusing.
Although you are now speaking to someone about your life assurance enquiry this time, actually again you won't be getting any advice.
You only just get information & guidance from their Sales Agent for you (not them) to make a more informed decision on the policies available you have then chosen to take out ie; No real comeback if your chosen plan was later found inappropriate to your longer term needs.
For example, you take out a whole of life mortgage policy but are aware in the near future you may switch back from interest only style to repayment mortgage. However, they don't probably ask you these types of questions.
Again unlikely to have any real comeback if you feel you were mis-sold, as you had no advice 'just guidance' unless there was a breach of certain rules which authorised firms are required to follow & didn't adhere to.
There are plenty of large Life Insurance Brokers online offering 'information guidance only.' eg; Reassured, Lifesure & Protect Line, mainly operate via non-advised sales.
3] Advice
Finally, there are 'advised brokers or financial advisers', who as the name implies give advice (like ourselves).
Here, the Financial Adviser will fully assess your own personal situation, then document this to you in your demands & needs report.
They will advise you after their research why they recommended the particular Insurers plans & benefits.
They can either cover & address every aspect of protection needs or alternatively just look at a few particular areas eg; you just wanted to discuss funeral protection shortfalls for now.
Later down the line, budget permitting, your adviser could then re-look into any highlighted protection shortfalls.
There are plenty of Life Insurance Brokers online offering advice & MSE had recommended several of that also offer incentives & vouchers like either Activequote, Assured Futures, Lifesearch. Overall Money Saving Expert didn't recommend here which Insurers were best for whole of life insurance policies.
Martin Lewis wholly on Life Insurance says for a 💯 '100% good rule of thumb' in 2025, his Best Life Cover Formula is "NEVER BLINDLY BUY DIRECT" expensive policy offers either via your Bank or one Insurer ie; Shop around or use a Broker.
Best UK Broker - Whole Life Policy Quotes
Martin Lewis Whole Life Policy Life Insurance: Review by Martyn Spencer Financial Adviser (2025)
*For any whole of life assurance products with an investment element - we may introduce you to an FCA authorised adviser after any further review deemed that appropriate. We may also introduce you to other selected professional partners for other protection, finance (such as a whole of market mortgage broker / equity release) or legal products as deemed appropriate.
By completing our general enquiry form you ‘may be introduced to another lender/provider’ for their specialist advice if we can't help *Any comments & views expressed on this Whole Life Assurance Martin Lewis Money Saving Expert review are for generic information only. They are not personalized advice or necessarily reflect MSE views.
This overview on Martin Lewis Whole Life Policy Life Insurance 2025 is not a scam fake or advert re Martin Lewis MSE team recommending our own broker services. As you may be aware he & MSE are fully impartial which means never putting his name or face / logo to anything. Yes, they mention individual products and services on their site, but they don't 'support' them.
People look up to him, searching to get his 'best whole life insurance' wisdom & tips. Noting that as he is not an adviser, so MSE and Martin Lewis helps compare the market but does not personally give advice.
Martin Lewis Money video's or images shown may also have some out of date information on them - due to the ongoing cost of living crisis. Often these whole life insurance MoneySavingExpert articles may no longer be personally updated or written by Martin Lewis himself. MSE do state he oversees site content, especially the MSE weekly email.
Naturally, although MSE is an independant website finance allows no advertising nor subscription, it may receive a revenue via 'affiliate links' to what they believe are the top products or providers (which we aren't mentioned)
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