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In 2023, the average cost of life insurance in the UK is £35. However, the cost of life insurance can range drastically, from as little as £5, all the way up to £100+. The amount you put towards life insurance can depend on a variety of factors.
If you are fit, healthy, young and have little to no history of any medical issues, then you can likely obtain cover which has a low cost. However, your cover options may reduce and become more expensive as you get older, and naturally obtain ailments as people do with age.
The cost of life insurance in the UK can also drastically differ depending on the insurance company you are looking at, which shows a clear need to do research and look at a variety of providers when looking for cover. There are many mass market comparison sites which you can use, however, not all providers choose to show themselves on these sites, so doing some further research, or using a broker may be the most beneficial.
The cost of life insurance can vary depending on a number of factors, such as the policyholder’s age, health status, and the type of policy chosen.
The table below provides an overview of the average cost of various types of life insurance in the UK, based on the policyholder’s age. The data includes the cost of level term life insurance, decreasing term life insurance, whole life insurance, single policies, joint policies, smoker per month and non-smoker per month. It’s important to note that these are just averages, and the actual cost of a life insurance policy will depend on the policyholder’s specific circumstances. Always consult with an insurance professional for an accurate quote and information about the policy.
|Type of Policy||Average cost (per month)|
|Level term life insurance||£10.22|
|Decreasing term life insurance||£7.69|
|Whole life insurance||£7.69|
|Two single policies||£16.22|
|A joint policy||£12.96|
It’s important to keep in mind that these are averages of the cost of life insurance in the UK for ages between 20-50, and the actual cost of a life insurance policy will depend on the policyholder’s specific circumstances. Always consult with an insurance professional for an accurate quote and information about the policy.
The quotes below show the cost of a level term life insurance policy for a non-smoking individual with £100,000 cover. A level term life insurance policy is a type of policy where the premium remains the same throughout the term of the policy, regardless of the age of the policyholder. This means that the policyholder will pay the same premium each month or year, regardless of whether they are 20 years old or 50 years old.
|Age||Level term life insurance|
As the table shows, the cost of the level term life insurance policy varies depending on the age of the policyholder. The younger the policyholder, the cheaper the policy. For example, a 20-year-old policyholder would pay £4.55 per month for a £100,000 cover, while a 50-year-old policyholder would pay £28.82 per month for the same coverage.
It is important to note that the cost of life insurance policies can also vary depending on factors such as the policyholder’s health, lifestyle, and occupation. A non-smoker will typically have a lower premium than a smoker due to the increased health risks associated with smoking.
On average, the cost of a level term life insurance policy with £100,000 cover for a non-smoking individual is £10.13 per month. However, it is important to keep in mind that this is just an estimate, and the actual cost may vary depending on the policyholder’s age, health, and other factors.
We compare plans from the leading life insurance providers
Decreasing term life insurance is a type of life insurance that provides coverage for a specific period of time, typically 20 or 25 years. The coverage amount decreases over time, typically in conjunction with a mortgage or other loan. This type of insurance is often used by individuals who are looking to provide financial protection for their loved ones in the event of their untimely death.
In the quotes below, the non-smoking individual is looking for £100,000 worth of coverage. The cost of the insurance decreases as the individual ages, with the lowest cost being £4.71 at the age of 20 and the highest cost being £17.11 at the age of 50. This is due to the fact that the risk of death increases as individuals get older.
|Age||Decreasing term life insurance|
It’s important to note that smoking can also affect the cost of life insurance. In this scenario, the individual is a non-smoker, which could account for the lower costs of the insurance.
Whole of life insurance is a type of life insurance that provides coverage for the entirety of an individual’s life, as opposed to a specific period of time like decreasing term life insurance. The coverage amount remains the same throughout the policy, and it is typically more expensive than term life insurance.
|Age||Whole life insurance|
In the table above, the non-smoker, in good health, is looking for £100,000 worth of coverage. The cost of the insurance increases as the individual ages, with the lowest cost being £62.41 per month at the age of 20 and the highest cost being £146.53 per month at the age of 50. This is due to the fact that the risk of death increases as individuals get older, and the insurance company will have to pay out the death benefit for a longer period of time.
It’s important to note that smoking and overall health can also affect the cost of life insurance. In this scenario, the individual is a non-smoker and in good health, which accounts for the lower costs of the insurance.
Overall, whole of life insurance can be a useful tool for individuals looking for lifelong coverage, and it can also be used as a way to cover funeral costs, estate taxes and other end-of-life expenses. However, it’s important to keep in mind that the costs will be higher than term life insurance, and it may not be suitable for everyone’s budget.
An Over 50s insurance plan is designed to provide a cash sum to loved ones upon the policyholder’s death. The cost of the plan will depend on a variety of factors, including the policyholder’s age, chosen monthly premium, and tobacco or nicotine use.
|Policyholder||Age at Policy Start||Monthly Premium||Tobacco/Nicotine Use||Cash Sum on Death||Age at Death||Total Premiums Paid||Total Cash Sum Paid Out|
The table above shows the cost of three different Over 50s insurance plans for three different policyholders. The table includes information about the policyholder’s age at the start of the policy, the monthly premium chosen, their tobacco or nicotine use, the cash sum on death, their age at death, the total premiums paid over the duration of the policy, and the total cash sum paid out on death.
From the table, we can see that all three policyholders did not use tobacco or nicotine products in the past 12 months, but the third policyholder is a regular smoker which affects the cash sum on death and the total premiums paid over the duration of the policy.
Policyholder 1 has the lowest monthly premium at £25 and the lowest cash sum on death at £3,093. They also have the shortest duration of the policy at 6 years and the lowest total premiums paid at £1,800.
Policyholder 2 has a slightly higher monthly premium at £34 but also has the highest cash sum on death at £9,180. They also have the longest duration of the policy at 20 years and the highest total premiums paid at £8,160.
Policyholder 3 has the lowest cash sum on death at £1,727 due to her regular smoker status, and the lowest total premiums paid over the duration of the policy at £2,400.
It’s important to keep in mind that these examples are just estimates, and the actual cost of an Over 50s plan will depend on the policyholder’s specific circumstances. It’s always a good idea to compare different plan options and speak with an insurance professional to find the best option for you.
Joint life insurance is a cost-effective option for couples and families who are looking to secure their financial future. Studies have shown that a joint policy can be up to 25% cheaper to arrange than two single policies. The reason for this is that joint policies are typically based on the combined risk of both parties, rather than each individual.
A joint policy will result in a singular payout in the event of the death of one of the policyholders. This means that the payout will only be given once, rather than twice if two single policies were taken out. However, this may not be an issue for some couples and families, as they may have similar financial needs and goals.
The table below provides an example of the cost difference between two single policies and a joint policy for two non-smokers who are looking for a £100,000 cover policy over a 30-year term. As the table shows, the cost of the joint policy is consistently cheaper than the cost of two single policies, regardless of age.
|Age||Two single policies||A joint policy|
On average, a smoker pays up to 50% more than a similarly aged non-smoker. Therefore, considering quitting smoking can have a huge determining factor on not only your life expectancy, but the cost of life insurance cover as well.
The table below compares the cost of life insurance for a smoker to a non-smoker over a 30 year period for a £100,000 cover policy. As the table shows, there is a significant difference in the cost of insurance for smokers and non-smokers. The cost of insurance for smokers is significantly higher than the cost of insurance for non-smokers, regardless of the age of the policyholder.
|Age||Smoker per month||Non-smoker per month|
The table shows that for a 20-year-old policyholder, the cost of insurance for a smoker is £5.87 per month, while the cost of insurance for a non-smoker is £4.55 per month. This difference in cost increases as the policyholder ages. For a 50-year-old policyholder, the cost of insurance for a smoker is £60.16 per month, while the cost of insurance for a non-smoker is £28.82 per month.
The reason for this significant difference in cost is that smokers are considered to be higher-risk policyholders by insurance companies. The use of tobacco products is a leading cause of preventable deaths, and insurance companies take this into account when determining the cost of insurance.
There are many factors which determine the cost of life insurance for a specific individual. Some of these factors are:
These factors will be utilised in a calculator by the insurance provider in order to determine your level of risk to them as an individual. For example, if you’re a smoker with a history of illness, your cost of life insurance is going to naturally be higher than a 21 year old non-smoker with no history of health issues.
In simple terms, the higher your risk of requiring to make a claim, the higher your fee will be in order to achieve cover. In simple terms, the higher your risk of requiring to make a claim, the higher your fee will be in order to achieve cover.
Another factor to consider beyond your ‘risk’ is the level of cover you actually need, or want. The purpose of life insurance is to provide peace of mind that if the worst does happen, that those left behind will be taken care of. This will be somewhat determined by the lifestyle choices of the potential recipients of the life insurance cover. Would £100,000 be enough, or would they need more?
Here are some factors to consider when deciding how much life insurance cover you may actually need.
Consider whether your partner and/or children will be able to afford the mortgage or cost of living without your income. If you own your home, a larger sum of life insurance coverage may be necessary to ensure that they can continue to live in the family home. This coverage can help pay off the mortgage and other household expenses, such as utilities and property taxes, so that your loved ones can maintain their current standard of living.
If you rent, you will need to consider whether your family can afford the monthly rental rate without your income. A larger sum of life insurance coverage may be necessary to ensure that they can continue to afford the monthly rental rate and maintain their current standard of living.
It’s worth noting that a larger sum of life insurance coverage may be the difference between your loved ones staying in the family home, or being required to downsize suddenly. This could be emotionally and financially challenging for them, and you may want to ensure that your loved ones have the financial resources to maintain their current lifestyle and home.
One of the most important factors to consider when determining how much life insurance coverage you may need is the potential impact of your death on your family’s financial situation. Can your family pay the bills without your income? If not, you may need to consider a larger sum of life insurance coverage to ensure that they can continue to maintain their current lifestyle.
Consider your family’s current income, expenses, and any outstanding debts or financial obligations. You will need to consider whether your family will be able to meet these obligations without your income, and if not, how much life insurance coverage may be necessary to cover these expenses.
Additionally, it is important to consider whether you would want your family to take on extra work in order to earn more money to maintain their current lifestyle. If so, you may need to consider a larger sum of life insurance coverage to ensure that they can continue to live comfortably without your income.
Consider also if you have any dependents such as elderly parents, disabled siblings, or special needs children who will also be affected by your loss of income and will need a provision for their care.
Childcare is an important factor to consider when deciding how much life insurance cover you may need in the UK. The cost of childcare can vary greatly depending on the age of your children, the type of childcare you choose, and where you live.
If you have young children, the cost of childcare can be quite high. For example, the average cost of full-time childcare for a child under two in the UK is around £6,000 per year. If you have multiple children, the cost can be even higher. It’s important to consider whether your partner will be able to afford these costs if you were no longer here, and whether life insurance coverage may be necessary to cover these expenses.
Additionally, it’s important to consider whether you want your children to be in childcare, and if so, whether your partner will be able to afford it. With only one parent around, someone needs to take care of the children while your partner is at work. If your partner is not able to take care of the children full-time, they may need to return to work or hire a nanny. This can be an additional cost that needs to be considered.
It’s also essential to think about other childcare-related costs such as school fees, after-school activities, and extracurricular expenses that may arise as your children grow up. It’s important to make sure that you have enough coverage to provide for these costs if you were no longer around.
When deciding on the appropriate amount of life insurance coverage, it’s important to consider the future of your children. Here are some factors to consider:
University Education: University education can be expensive, and if you want to ensure that your children have the opportunity to attend university without incurring significant debt, you may need to consider a larger sum of life insurance coverage.
First Car: A first car is an important milestone for many young adults, and if you want to provide for your children’s future by contributing to the cost of their first car, you may need to consider a larger sum of life insurance coverage.
First House Deposit: A contribution to a first house deposit can be a significant financial assistance for your children when they decide to buy their first house. If you want to provide them this help, you may need to consider a larger sum of life insurance coverage.
General costs as your children grow up: As your children grow up, they will have many expenses, such as new clothes, cost of hobbies, school trips, etc. If you want to ensure that your children have the financial support they need to enjoy these experiences, you may need to consider a larger sum of life insurance coverage.
The average cost of a funeral in the UK, including a burial, is just over £4,000. This cost can be even higher if you choose a more elaborate or personalized service.
When planning your funeral, there are a few key expenses to consider. The cost of a burial plot can vary depending on location, with prices ranging from a few hundred pounds to several thousand pounds. Additionally, the cost of a casket or urn can vary, with some options costing several hundred pounds. Other costs include the cost of transportation of the body, embalming, and the cost of a funeral director’s services.
When planning your funeral, it’s important to consider the financial burden that your loved ones may face in the event of your passing. If you don’t have enough life insurance coverage, your loved ones may struggle to pay for your funeral expenses, which can add to their emotional stress during a difficult time. It’s important to carefully evaluate how much life insurance coverage you may need to ensure that your loved ones are able to pay for your funeral costs without undue financial burden.
When deciding how much life insurance cover you need in the UK, one of the main factors to consider is any debt that you may have. This includes mortgages, loans, credit card balances, and other outstanding debts that you may have. If you pass away without enough life insurance coverage, your estate will be used to pay off these debts, which can greatly reduce the amount that your family will receive from inheritance.
It is important to consider whether you are okay with this outcome or if you would prefer to have life insurance coverage in place to ensure that your family receives more of your estate. For example, if you have a large mortgage or other significant debt, it may be beneficial to have a larger life insurance policy in place to ensure that your family is able to pay off these debts and still receive a substantial amount from inheritance.
Another important consideration is that if you pass away and your estate is not able to cover your debts, your creditors can still claim money from your beneficiaries. This can put an undue financial burden on your loved ones and can cause a lot of stress and hardship. Therefore, having enough life insurance coverage in place can help protect your family from the financial burden of outstanding debts.
Inheritance tax in the UK is a significant factor to consider when determining how much life insurance cover you may need. The current rate for inheritance tax in 2021 is 40% on derivatives over £325,000. This means that if the value of your estate exceeds £325,000, your beneficiaries will be required to pay a 40% tax on the amount over this threshold.
It is important to note that life insurance is not typically considered taxable income, however, there are some circumstances where this may not be the case. For example, if the life insurance policy is held in a trust, the proceeds may be subject to inheritance tax. Additionally, if the policy is held in a trust and the beneficiaries are not immediate family members, the proceeds may also be subject to inheritance tax.
When it comes to finding the best life insurance policy, it’s important to compare quotes from multiple providers. At Life Cover Quotes, we understand the importance of finding the right coverage at the right price, which is why we make it easy for you to compare quotes from top insurance providers. Our platform connects you with experienced brokers who can help you find the best policy for your needs and budget.
By comparing quotes, you can see the different options available to you, as well as the costs associated with each policy. This allows you to make an informed decision and choose the coverage that best suits your needs.
In addition to comparing quotes, our brokers can also provide you with personalized recommendations based on your specific circumstances. They can help you understand the different types of life insurance policies available, such as term life insurance, whole of life insurance, family income benefit, and more, and help you choose the right coverage for you.
Don’t let the process of finding life insurance overwhelm you. Let us at Life Cover Quotes help you compare quotes and find the best policy for your needs. Contact us today to get started.