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What Is The Average Cost Of Life Insurance Cover In 2024?

average cost of life insurance

Are you considering taking out a life insurance policy, or do you fear you are paying too much for existing cover?

Life insurance is not just a choice but a crucial safeguard for your family’s financial future. It’s crucial to compare quotes to obtain the most affordable rates.

Average Cost Of Life Insurance Per Month Summary:

The average cost of life insurance in the UK is approximately £8 per month for every £100,000 worth of cover. The amount of cover you need is about ten times your annual salary.

If you earn £30K per year, £300K of life insurance may cost you less than £25 per month. Monthly premiums can begin at just £4.51 for £100K worth of coverage for families with younger members.

  • Financial Security: Life insurance provides your loved ones with a financial safety net, ensuring they can maintain their standard of living even in your absence.
  • Debt Management: It helps cover outstanding debts, including mortgages and personal loans, preventing your family from inheriting your financial burdens.
  • Affordability: Life insurance is more affordable than many realise, with policies available for less than the price of a daily coffee. This ensures that this crucial cover is within reach for most families.
  • Adaptability: As personal circumstances and responsibilities change, life insurance policies can be adjusted to meet your evolving needs, ensuring continuous protection for your loved ones.

The Insurance Hero team have studied policy terms and premiums from a broad range of UK insurers, including those not featured on comparison websites.

We are confident we can secure you a better life insurance quote than the commission-driven and far-from-impartial comparison websites.

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Average Life Insurance Cost Per Month UK Tables

So, what’s the average cost of life insurance? The price of life insurance goes up with your age, and many other factors could affect the cost of your life insurance.

Our average life insurance cost per month UK tables should give you a fair indication of costs for term, joint, whole of life and smokers policies. People are often surprised at how low policy prices can be.

As you can see from the tables below, coverage is available for under £5 per month. It is also possible for a smoker in their 30s to secure cover from under £10 per month.

The Insurance Hero team frequently monitors and updates these prices to ensure we can offer policies that suit every budget.

Below is an example price comparison of a term policy with a decreasing term insurance policy. These are quotes for a £100,000 policy. This covers a 30-year period and is based on a healthy non-smoker.

Your AgeLevel Term Life InsuranceDecreasing Term Life Insurance
20£4.52£4.67
25£5.28£4.96
30£5.83£5.15
35£7.89£6.05
40£11.43£7.93
45£17.31£10.80
50£28.84£17.08

The figures show that term life insurance with a decreasing premium is more affordable regardless of age. However, the savings ratio between the two increases as you get older.

The average life insurance cost of a joint policy

A joint life insurance policy is a life insurance policy that covers two people, usually a married couple. If one person dies, the other person will receive the death benefit. This type of policy can benefit couples who want to ensure their loved ones are taken care of financially in the event of their death.

Having a joint policy is generally 25% cheaper than having two singles. It will always result in only one payout instead of two.

When deciding whether to purchase joint coverage, it is important to consider the savings you will make every month compared to the loss of one sum assured being received by your loved ones in an emergency.

Below is an example of a price comparison between single policies and one joint policy. These quotes are based upon a policy that provides £100,000 of coverage over 30 years for non-smokers in good health.

Age Of PersonCost of One Joint Policy (£ per month)Cost of Two Single Policies (£ per month)
205.297.16
256.328.65
307.698.73
3510.3611.23
4014.7116.23
4521.5423.31
5032.8634.50

The Average life insurance cost for a smoker

Smokers’ life insurance policies are life insurance policies that are specifically designed for smokers. These policies typically have higher premiums than regular life insurance policies, but they can still be a great way for smokers to get the necessary coverage.

So, as we mentioned above, because of the additional health consequences, the average life insurance cost for a smoker can be higher than for someone who is not a smoker. This could reach up to 50% more for someone over 50 years old.

Smokers pay an average of 54% more than non-smokers in the UK for standard life insurance. The average monthly cost of life insurance for smokers is £14.19 per month, compared to £7.99 for non-smokers[3].

Your smoking status is just one of the factors that will be considered when you arrange your life insurance.

Life insurance providers may request additional information, such as how much you smoke and for how long. The data will be used to assess the potential impact on your health and the effect it might have on the possibility of you being eligible for a claim.

Below is an example of a price comparison between a smoker and a non-smoker in good health. The quotes are based upon a £100,000.00 level term policy over a 30-year period.

Your AgeSmoker Per Month CostNon-Smoker Per Month Cost
20£5.86£4.54
25£7.25£5.28
30£9.82£5.83
35£14.61£7.91
40£22.74£11.41
45£36.76£17.36
50£60.15£28.81

Average costs of a whole of life insurance policy

A whole of life insurance policy is a type of life insurance that provides coverage for the entire lifespan of the policyholder.

It differs from other life policies, such as term life insurance policies, which only provide coverage for a specific period. A whole of life insurance policy can be used to cover various needs, such as final expenses, estate planning, and long-term care.

The premiums for a whole of life insurance policy are typically higher than those for other types of life insurance policies.

Still, the policyholder can be assured they will have coverage until death. This type of policy can be a valuable asset for individuals who want to ensure that their loved ones are cared for financially after they die.

This guaranteed payout is why this type of protection tends to be the most costly.

Like other types of life insurance, the cost of your premiums will be affected by your age, health, and coverage requirements.

The table beneath shows example costings for whole of life insurance. The Quotes are based upon a non-smoker in fair health requiring £100,000 of cover:

Your AgeWhole Of Life Cover Cost
30£71.01
35£82.92
40£100.91
45£122.64
50£124.34

The table below provides an overview of the monthly cost of a £250k life insurance policy designed to protect a UK mortgage based on the insured’s age. The costs increase with age, reflecting the higher risk and premium associated with older policyholders.

Your AgeMortgage Life Insurance Monthly Cost (£)
206.03
257.63
309.87
3515.22
4021.20
4542.09
5071.01

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average cost life insurance over 50

Costs Of Life Insurance Case Studies:

Case Study 1: Young Couple with Kids

Meet John and Lisa, a young couple living in Brighton, both aged 32, with two children aged 3 and 5. Being mindful of their responsibilities, they decided to explore life insurance policies. Their primary goal was to ensure their children would be financially secure if something happened to either of them.

While researching, they found that the costs of life insurance varied greatly based on several factors, such as age, health condition, and the amount of coverage.

Being young and in good health, John and Lisa realized that the cost for life insurance was quite affordable for them. They were pleasantly surprised to find that the cost life insurance premiums were well within their budget, debunking the myth that life insurance is always expensive.

They found that the average cost life insurance premium for their age bracket was around £6 to £8 per month for a level term or decreasing term policy, respectively.

A small price to pay for the reassurance it provided. The pricing life insurance at their age and health status was a good investment considering the long-term benefits.

Upon choosing a policy, they knew their children would be cared for financially should the unexpected occur.

They also discovered the benefits that the life insurance policy would provide for their mortgage payments, ensuring that their family would not lose their home. Looking at the prices of life insurance, they felt reassured that they had made a wise choice in safeguarding their family’s future.

Case Study 2: Couple in their Fifties with Grown-Up Kids

Peter and Margaret, both in their fifties, live in Leeds. Their three children are all grown up. Peter and Margaret decided it was time to reconsider their life insurance policy.

Their main concern was the costs of life insurance at their age. They knew that the cost for life insurance would be higher than when they were younger due to their age and potential health conditions. They had to consider whether the cost life insurance policy would be worth the investment at this stage of their life.

After much research, they found out that the average cost life insurance premium for their age bracket was slightly higher, around £28 per month for a level term policy. However, they were still surprised at the affordability of the pricing life insurance for their age group.

One of the primary benefits they discovered was that their life insurance could help cover inheritance tax, meaning their children would be left with more.

This helped them to decide that despite the prices of life insurance being higher at their age, the financial security it provided for their family made it a worthwhile investment.

In both case studies, despite differences in age and the consequent variation in costs of life insurance, the benefits of financial security for their loved ones made life insurance an important and valuable investment.

benefits of life cover

Your life is precious. It’s time to protect it

You work hard for your money. You should be able to rest easy knowing that if something happens to you, your loved ones will be taken care of. That’s why we offer life insurance policies tailored for you, so you can feel confident that your family is safe and secure.

We know that choosing the right life insurance policy can be difficult. That’s why we offer a free quotation service, so you can compare policies and find the one that’s right for you without any obligation. We want to ensure you have all the information you need to make an informed decision about your family’s future.

So please fill in the short form above and get a no-obligation life insurance quote today. You could be saving money on your premiums in no time at all. Plus, our online form is secure, easy to complete, and only takes a minute or so of your time.

Life Insurance Gives You Real Peace of Your Mind

If you pass away, your family may lose the things that make life more worthwhile—for instance, extra guitar or netball lessons or a long-deserved holiday.

A life insurance policy protects your loved ones from financial strain and uncertainty. For example, to pay off debt, like credit card bills or a car loan.

Additionally, you may require an insurance policy when you purchase a home. Financial institutions, including banks, might need a policy in place to provide a mortgage.

What affects the cost of life insurance?

Many different factors affect how much life insurance will cost. One of the most important is your age. The younger you are, the cheaper your life cover will be. That’s because the insurance company expects you to live for a more extended period, so they charge you less for coverage.

Another important factor is your health. If you have a history of health problems, are a smoker, or are currently suffering from a critical illness, your life insurance will be more expensive.

Your occupation is also a factor that affects your life insurance premiums. If you have a dangerous job (such as a soldier or a miner), your rates can be higher than someone with a less risky job (such as an office worker).

The reason is that there’s a greater chance that you could die while working, so the insurance company charges more to cover you.

Finally, the amount of coverage you need also affects the cost of your life insurance premium. The more coverage you need, the more expensive your policy will be, as the insurance company is taking on more risk by insuring you for more money.

So, if you’re wondering what affects the cost of life insurance cover, those are some of the most critical factors. Personal circumstances such as age, health, occupation, and the amount of coverage you need all play a role in determining your premiums.

When’s the best time to buy life insurance?

There’s no one-size-fits-all answer to this question, as the best time to buy life insurance depends on your unique circumstances. However, there are a few things to remember when deciding whether to purchase life insurance and when to buy it.

One factor to consider is whether you have dependents who would suffer financially if you died. If you do, it’s essential to have life insurance to ensure they can continue living comfortably after your death.

Another thing to think about is your age and health. The younger and healthier you are, the cheaper your premiums will be. So, buying life insurance sooner rather than later might be a good idea if you’re young and healthy.

On the other hand, if you’re older or have health issues, you might not qualify for life insurance. In that case, it’s essential to have other sources of financial support for your loved ones in place in case you die.

The bottom line is that there’s no perfect time to buy life insurance. The best time is when you feel you need it and can afford the premiums.

cost of whole life insurance

💡Insurance Hero Tip: Smokers are likely to be charged more for life insurance because they add what is known as “smoker loading” to the cost.

However, if you stop smoking, your life insurance price may drop. Some insurers will even remove the smoker loading if you have quit for at least one year.

Insurance Hero can help you find the right policies for you. When applying for life insurance, you must be honest about your smoking history.

cost of term life insurance

How to reduce the cost of your life insurance

As you know, life insurance prices rise with age. This is something that you cannot control. You can do some things to reduce the cost of your life insurance, regardless of your age.

These are:

How much life insurance cover do you really need?

You may need less insurance if you have considered things such as your partner’s future income or your children’s financial independence age.

Most people purchase insurance until their spouse retires. However, it is possible that your partner could support themselves financially before that time. This would reduce the time that you need to be protected.

There are also natural points when household expenses may decrease, such as a mortgage being paid off or the financial independence of one or more children. This could help you reduce your policy term and the monthly cost you will pay.

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What kind of life insurance do you need?

People think of life insurance as a policy that would pay the same amount whether you die now or later. This is called ‘level coverage’. The sum paid out remains the same regardless of whether you die now or in the future. However, does everyone require level coverage?

Many people find their financial vulnerabilities and responsibilities decrease as they age, usually due to paying off mortgages or the kids’ ability to look after themselves.

Young adults have the highest need for financial protection. They have a high outstanding mortgage balance or have many years to provide for their families. But fast forward 10-20 years, and your need for protection will likely have diminished.

This is why ‘decreasing coverage’, which pays less yearly over the policy, could be an option. Another option is the family income benefit. These would be less expensive than level coverage, but they are still sufficient for your needs.

cost of life insurance for 60 year old

Average life insurance cost – level term vs decreasing term cover

As the policy’s term length decreases, term insurance is the most affordable life insurance.

Regarding life insurance coverage, there are two main types of policies: level term life insurance and decreasing-term life insurance. Both have unique benefits, so deciding which is right for you can be challenging.

Premiums

The key difference between level term and decreasing term cover is how the premiums are structured. With level-term insurance, the premiums remain the same throughout the entire duration of the life policy.

Guaranteed premiums mean that you will always pay the same amount each month, regardless of how old you get or how long you live.

On the other hand, decreasing term insurance has monthly premiums that decrease over time. This is often an advantage, as your monthly payments will become more affordable as you age.

Pay Out Amount

Another critical difference between the two types of life insurance coverage is how the death benefit is paid out. With level term insurance, the death benefit is paid out in a lump sum to your beneficiaries. The amount being paid out doesn’t change with time.

This can help them cover funeral costs, inheritance tax, other debts (e.g., interest-only mortgage), or final expenses you may leave behind. On the other hand, Decreasing term insurance pays out the death benefit in instalments. This can be helpful if your beneficiaries need regular income to help cover living expenses.

With decreasing term life insurance cover, the payout amount decreases over time, which is why people tend to choose it when they have a debt that’s being reduced as time passes, such as a repayment mortgage (although there’s also something called mortgage life insurance available).

So, which type of policy is right for you? That depends on your individual needs and circumstances. If you want coverage lasting for a set number of years, level-term insurance is the best option.

If you want monthly premiums that will decrease over time, decreasing term insurance is the way to go. Ultimately, the key is to choose the policy that best suits your needs and budget.

Some typical costs that a life insurance policy could cover:

ExpenseAverage Cost
Coverage of outstanding mortgage payments£171,000
Cost of childcare over ten years£108,000
Cost of a university degree (including maintenance and tuition fees)£43,000
Cost of language tuition for two children over ten years£36,000
Modern dance, drama or singing tuition twice a week for two children over ten years£57,000
TOTAL: £415,000

The Future of Life Insurance Costs in the UK

As we look forward to the future of life insurance costs in the United Kingdom, it is essential to consider how various factors will impact premiums, policy offerings, and the industry as a whole.

Two significant factors influencing the future of life insurance are the UK’s exit from the European Union (Brexit) and rapid technological advancements.

This section will explore these aspects and their implications on the life insurance market.

The Impact of Brexit

Brexit has had far-reaching effects on various industries within the UK, and the life insurance sector is no exception. While it is still early to gauge the full impact of Brexit on life insurance costs, some potential consequences have already begun to take shape.

Regulatory Changes

The UK’s departure from the EU has led to a shift in the regulatory environment.

As the UK establishes its own rules and regulations, life insurance providers may need to adapt their offerings and business models to comply with the new regulatory framework. This transition could increase administrative and compliance costs, eventually trickling down to consumers through higher premiums.

Economic Uncertainty

Brexit has also brought a degree of economic uncertainty, leading to fluctuations in interest rates and currency values.

The life insurance industry relies heavily on long-term investments to meet its obligations to policyholders, and any economic instability could affect these investments, potentially impacting life insurance costs. Insurers may respond to this uncertainty by adjusting their premiums or changing the terms of their policies.

Market Competition

Post-Brexit, UK-based life insurance providers might face increased competition from European providers looking to establish a foothold in the UK market. This heightened competition could lead to more competitive pricing, benefiting consumers by driving down life insurance costs.

Technological Advancements and Life Insurance Costs

Technology is rapidly transforming the life insurance industry, with innovative solutions offering new ways for insurers to manage risk, streamline operations, and enhance customer experiences. Here, we discuss some technological advancements that could influence life insurance costs in the UK.

Big Data and Advanced Analytics

The emergence of big data and advanced analytics enables life insurance providers to gather and process vast amounts of information.

This capability allows them to understand customers’ needs better, predict trends, and identify potential risks. As a result, insurers can make more informed decisions when underwriting policies, potentially leading to more accurate risk assessments and pricing.

Wearable Technology and the Internet of Things (IoT)

Wearable devices and IoT technology have enabled insurers to gather real-time data about their customers’ lifestyles and health.

This data can be used to encourage policyholders to adopt healthier habits, which could lead to lower life insurance costs in the long run. Furthermore, life insurance providers may offer personalised policies based on the data gathered, allowing for more accurate risk assessments and tailored premiums.

Automation and Artificial Intelligence (AI)

Automation and AI have the potential to streamline various aspects of the life insurance industry, from underwriting to claims processing.

Life insurance providers can reduce operational costs and enhance efficiency by automating routine tasks and leveraging AI-driven insights. These savings could be passed on to consumers through lower life insurance premiums.

Political, economic, and technological factors influence the future of life insurance costs in the UK. As the industry adapts to the changes brought about by Brexit and embraces technological advancements, consumers can expect to see policy offerings and pricing shifts.

Staying informed about these developments is crucial for securing the most cost-effective life insurance policy.

By keeping abreast of these changes, individuals can make informed decisions when selecting a life insurance policy that meets their needs at the most competitive price.

In an ever-changing landscape, it is critical to remember that life insurance is essential to financial planning.

As the UK’s life insurance industry evolves in response to Brexit and technological advancements, individuals must remain proactive in understanding the market and securing the best coverage for their unique circumstances.

By staying informed and engaged, consumers can ensure they are well-positioned to navigate the future of life insurance costs in the UK.

Average Life Insurance Cost UK Conclusion

No matter your age, health, or type of life insurance, it’s worth comparing life insurance quotes from different insurers to get the best life insurance policy at a great price.

So, do you need life insurance? The answer is probably yes, especially if you have people who are financially dependent on you.

A life insurance policy can give your loved ones financial security when you’re gone. It can help to ease the burden of funeral costs and other expenses associated with your death.

A life insurance policy is a way to show your loved ones that you care. It can give them peace of mind knowing that they will be taken care of financially if something happens to you.

It’s important to remember that life insurance isn’t just for stay-at-home parents or those with young children; it can be vital for anyone with loved ones who would be affected by their death.

You don’t have to worry about finding the right policy or filling out a lot of paperwork – the companies we work with will handle all that for you.

Complete one of our simple forms, receive a no-obligation life insurance quote and receive the best life insurance prices. We hope this has helped make sense of life insurance and why it’s so important.

cost of life insurance for mortgage

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Prices Of Life Insurance Research References

The tabular data is accurate as of January 2024, but we must assume that financial product costs (including life insurance deals) fluctuate with time based on inflation and other market forces.