How much does life insurance cost? The average cost of life insurance in the UK

The cost of life insurance depends on a host of factors, but to give you an idea on how much you might pay per month for life insurance cover, we have carried out research on a number of policies.

Last updated: January 2019

The amount you pay for life insurance depends on a variety of different factors – all relating to your own individual needs and circumstances.

These factors include:

  • The amount of cover you need (e.g. £100,000, £200,000 etc.)
  • The type of life insurance (whole of life, level term etc.)
  • If you opt for a term policy, the length of the term will affect the cost of premiums
  • How old you are when you take out the policy (generally the younger you are, the cheaper the premiums)
  • Your health at the time of taking out the policy
  • Whether you smoke or not
  • Your lifestyle (including any dangerous sports or activities you take part in)

While the above factors have a big role to play in how much life insurance costs, for many of them you can’t do anything about it. You can choose to get less cover, or opt for a shorter term etc. to keep the cost down – but you can’t change how old or healthy you are at the time you take out a policy.

One thing you have complete control over- which can dramatically affect the cost of life insurance – is where you choose to buy it from.

To buy life insurance you generally have three options:

  • Go direct to a life insurance company
  • Use a comparison site
  • Use an insurance broker

Each of these options comes with its own benefits – but if finding the cheapest life insurance cost is your main objective then you may be surprised at which one is the best choice.

To get our help finding the cheapest life insurance policy, you can request a quote from our life insurance experts now:

Request a quote

How much is life insurance?

Below we outline the benefits of each option and identify the average cost of life insurance from each.

Buy direct from an insurance company

In terms of getting the best deal, this is perhaps the worst way to buy life insurance. Going direct to a life insurance company means you will likely pay full price and you won’t get the chance to compare the price against other policies on offer.

In order to tempt customers to buy policies direct from them, many life insurance companies offer free gifts such as vouchers and gift cards. You can see a full list of these here: Best life insurance with free gift deals

Many life insurance companies (such as Legal & General, Aviva, Direct Line and Churchill) currently state you can buy life insurance from as little as £6 per month. However, only a small percentage of customers will be able to access this cheap rate. As life insurance is dependent on your individual circumstances then you will likely pay more than this.

Use a comparison site

Comparison websites such as Confused, GoCompare, MoneySupermarket and Compare The Market are the best way to check the current life insurance market and make sure the quote you get is the cheapest available.

You can do this now using the below links:

The only downside with comparison websites like the above is that they earn a commission rate for every policy they sell – which is often passed onto the consumer in the quotes generated through the site.

Use an insurance broker

There are two types of broker you can use to buy a life insurance policy – discount brokers and advisory brokers.

Discount brokers

As long as you don’t get advice from them and just buy a policy (which usually costs a £25 fee), discount brokers will rebate the commission they receive onto your policy – so you effectively get a discount (hence the name!).

Although you have to pay a small fee, the discount you receive can amount to £1,000’s over the lifetime of your policy – so it’s a no-brainer really.

We’ve reviewed some of the prices on offer from some of the top discount brokers for life insurance for a 30-year-old non-smoker and a 45-year-old smoker for a 25-year term life insurance policy worth £200,000:

30-year-old non-smoker:

Discount Broker

Monthly premium

Lifetime cost

Rating

Cavendish Online

£5.83

£1,749

Cheapest

Moneyworld

£5.83

£1,749

Cheapest

Money Minder

£5.83

£1,749

Cheapest

 

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45-year-old smoker:

Discount Broker

Monthly premium

Lifetime cost

Rating

Cavendish Online

£36.99

£11,097

Cheapest

Moneyworld

£36.99

£11,097

Cheapest

Money Minder

£36.99

£11,097

Cheapest

As you can see from the below, these figures are a big saving from the average life insurance price you are quoted by comparison websites and life insurance companies:

 

30-year-old non-smoker:

Provider

Monthly premium

Lifetime cost

Comparison site

£8.25

£2,475

Life insurer

£8.86

£2,658

Typical bank

£9.52

£2,856

 

 

45-year-old non-smoker:

Provider

Monthly premium

Lifetime cost

Comparison site

£51.10

£15,330

Life insurer

£53.75

£16,125

Typical bank

£63.45

£19,035

 

 

All figures correct as of January 2019

Using all of the above figures, we can also get an idea on the average cost of life insurance in the UK. Combining all these quotes together gives us an average life insurance monthly premium of:

£29.72

This may be the average amount that people in the UK pay for life insurance, but that doesn’t mean it is how much you will pay for a new life insurance policy. Below we break down the complicated world of life insurance policies and tell you the best ways to save money and find the cheapest life insurance deals suited to you.

To get our help finding the cheapest life insurance policy, you can request a quote from our life insurance experts now:

Request a quote

What is life insurance?

Before we go any further, it’s important to define exactly what life insurance means.

In simple terms, life insurance is a policy which will pay out an agreed sum when you die – or if you die within a certain period of time. In exchange for this, you pay a monthly premium to the insurance company which is calculated based on a range of different factors.

The average amount currently paid for life insurance is £30.40 per month, but that includes every type of policy and a full range of different factors. The price you pay for life insurance will depend on your own circumstances and what type of life insurance you opt for…

Different types of life insurance

There are a lot of different types of life insurance policy available, all of which offer slightly different benefits and can therefore vary in cost.

The main types of life insurance policy are:

Whole of Life Insurance

This type of life insurance will run all the way up until you die and then pay out to your beneficiaries. As it has no end term and is designed to cover you for the whole of your life, it is generally the most expensive form of life insurance.

Learn more: Whole of Life Insurance

Term Life Insurance

This is a form of life insurance that lasts for a pre-defined period of time, for example 20 years.

If you die within that time then the policy will pay out. If not, it will simply close and you will no longer need to pay the monthly premiums. Level term life insurance policies are generally used to cover certain financial commitments e.g. a mortgage, or to make sure your children will have enough money to cover their education if you were to pass away.

As they only last for a certain time, term life insurance policies tend to cost less than whole of life policies.

Learn more: Term Life Insurance

There are many other different variants of life insurance, so to find out more visit our Life Insurance page now or get in touch with our experts to request a quote:

Request a quote

What affects the cost of life insurance?

The cost of your life insurance premiums will depend on your own personal circumstances as well as the type and level of cover you require.

The factors that affect the price of life insurance include:

  • The amount of cover you need (e.g. £100,000, £200,000 etc.)
  • The type of life insurance (whole of life, level term etc.)
  • If you opt for a term policy, the length of the term will affect the cost of premiums
  • How old you are when you take out the policy (generally the younger you are, the cheaper the premiums)
  • Your health at the time of taking out the policy
  • Whether you smoke or not
  • Your lifestyle (including any dangerous sports or activities you take part in)

Life insurance will generally cost more for people with existing health conditions (e.g. diabetes, high blood pressure), those who smoke, people who wait until middle or old age before buying a policy and those that regularly take part in dangerous sports and activities. This is because these factors mean there is an increased risk to the insurance company for offering you cover.

Learn more about life insurance