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Article on: Average Cost Life Insurance UK

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* Average Cost of Term Insurance >* 10 Key Factors Affecting Costs >
* Average Cost of Over 50’s Whole Life >* Term v Whole Life Insurance >
* Average Cost of Critical Illness >* Joint Cover v Single Policies >
* Average Life Insurance Payout >* How Much Cover Do I Need >

What’s the ‘Average Cost of Life Insurance per Month’?

What is the ‘Average Cost of Life Insurance UK’ per Month? Our UK broker comparison research shows this is currently around £39pm*, based across various term life insurance policy types, smoker status and average age.

However, by Quoting you Best Broker Deals Online > 15 secs we are able to advise you there and then, with average UK life insurance quotes start from below £4pm

But to answer this whole question & subject 💯 100% better here, let us now look at some average typical life insurance policy costings… and for a different range of situations. See these all below in our case sample tables.

These example cases are all based on the various life insurance average cost uk age groups & re smoker status but with full underwriting as standard. Then, also around different life cover policy types & time periods* (indicative rates at 4/23).

Note: That the wording ‘life insurance average cost’ means these case examples below here are therefore not quoting you the cheapest cost lifecover deals. Alternatively, neither are they the most expensive cost quotes, but just the average uk life insurance cost between these 2 premiums.

*Our typical calculations are based here on therefore simply using the middle median price cost points between these lowest & highest premiums. From these premiums we can then work out the average price of how much is life insurance a month (then rounded up).

For reference as Life Insurance brokers, we would also point out that some of the cheapest life policies available on the internet we have seen, may be age cost based premiums. What does this mean?

This means their premiums may therefore go up annually based on that insurers ‘age costed formula’ as you get older and over the policy term. As such, their own particular average life insurance cost uk prices become harder to determine against those plans with fixed non-reviewable premiums.

Other life policy types maybe health assessed. These plans therefore require you to regularly interact digitally or virtually with the Insurers over the whole time period of the policy to best optimize your price for life insurance.

However, although this may offer you an initial beneficial price, be aware that if you don’t regularly interact with Insurers as they requested over a period of time, then their average life insurance costs can then also rise at their regular reviews.

In other words, it seems your average comparison calculation playing fields here are not all level. It makes any analysis harder when comparing all these various deals and between guaranteed or reviewable premiums.

how much does the average life insurance policy cost | uk broker deals

What is the Average Life Insurance Cost per month UK?

So, if further investigating what is the average life insurance cost per month uk here, sometimes these Life Insurers ‘age costed’ or ‘health based’ life quotes are also classed confusingly as ‘guaranteed’ premiums.

However, although perhaps quoted cheaper initially, as mentioned above their life insurance monthly cost may still go up annually based on that Insurers guaranteed priced formula.

All these case examples are from some of the best uk life insurance companies policies. Nonetheless, as we did our case studies on what is the average insurance in the UK, we also noted a wide variation as to both their average pricing dependant on policy benefits, which we will look at.

Note: UK Insurers prices can change on a regular basis, so the life insurance costs average will naturally then vary either both up or down in price.

Also, our research on how much is life insurance uk per month tells us there is often a higher premium price paid sometimes by going direct instead to insurers websites, often with them offering free gifts for life insurance to entice you.

Or instead direct via a bank, building society or mutual. They may usually only use 1 provider here eg; Nat West Life use AIG, or Halifax via Scottish Widows. They may also have different or higher overheads, versus using a uk life broker agent – who could potentially offer a lower average cost deal.

The direct offerings also may not include any other additional valuable costed rider benefits, like say waiver of premium benefit. This helps protects your life cover policy premiums if you are off work longer term re sickness or accident etc;

However, some insurers do include this waiver benefit automatically for example within their plans. Others may charge you extra and after various wait periods eg; 1/3 or 6 months. All these types of additional life policy features may therefore affect your average cost life insurance uk underlying calculations.

Finally, our various case sample tables will also be affected by the number of UK Insurers available in the marketplace.

Since the 2000’s, several leading Insurers have also either merged forces or maybe announced recently they will be leaving the uk individual protection market eg; Canada Life & Aegon. This activity all affects the ‘average cost life insurance uk’ figures shown now & maybe into the future.

how much is the uk average life insurance policy | broker deals
what is the average life insurance cost per month | uk broker deals

How much should I pay for Life Insurance?

How much should I pay for life insurance will all depend on your own personal & family needs.

There is no one single answer for everyone. For example, are you insuring…

  • Lump sum for your family if you died – but only whilst kids are dependant?
  • A repayment mortgage or secured home equity loan – over its term?
  • Income to help cover – ongoing regular bills & expenses upto retirement?
  • Providing a lump sum – to help cover funeral costs?
  • Help to cover – Inheritance Tax liability?
  • Wish to leave – Family Legacy?

All these various options above will then also offer different solutions re their average monthly cost of life insurance uk policy pricing.

Average UK Family Debt?

At the end of 2023, the average UK Family debts per household, including mortgages, credit card debts & unsecured debts stood at £65,795.

Given the ongoing cost of living crisis, this can present real challenges if a main breadwinner or family member died.

According to the Office for Budget Responsibility, UK household debt across all categories is anticipated to climb from over £2.2 billion in 2023 to £2.4 billion in 2025. 

average uk family debt

So, factor in also that some Life Insurance policies can be level or perhaps increasing by say RPI (to offset rising inflation & UK cost of living increases).

Or, that some policies maybe a decreasing life insurance to help specifically cover a repayment reducing style mortgage or business protection loan.

Alternatively, you can have particular policies that at a claim can be a paid out as either a lump sum or an income. This also all affects their life insurance average cost pricing.

Most UK life policies may include free terminal illness cover (which is an accelerated death claim payout & so not to be confused instead with critical illness cover).

Plan premiums can then be paid over a set term period time frame for term insurance policies. Or, alternatively for fully underwritten whole of life cover be paid up until you die.

Generally as a rule of thumb, the shorter the life policy term, then the cheaper the overall premiums cost. Conversely the longer the term, the usually more expensive this cost.

Also, the better your own personal & family history re health and lifestyle, the more likelihood you are to get a standard priced insurance deal.

However, the worse these both are, then how much should you pay for life insurance may then increase correspondingly as Insurers re-assess their increased underwriting insurance risks.

Smoker status rates also increases your average prices. This usually means Insurers ask have you smoked in the last 12 months; cigarettes, cigars, e-cigarettes, pipes, vaping liquids whether nicotine or not, nicotine patches or other similar products.

Even if you have recently given up all types of smoking products now for several months, your honest disclosures here will all affect what is the average life insurance cost per month [see below table examples].

Dependant on all your answers to any of these above example option questions, then typically if asking how much are life insurance policies? Prices can usually start from as low as £4/5pm.

life insurance costs average | uk broker deals

Average ‘Life Insurance Costs’?

Our example cost of life insurance figure tables below are for £100,000 term life insurance over 20 years.

This 20 year term life insurance average cost example is also our most typical quote that someone usually first requests on our website.

However, it also assumes that the person quoting is fit and healthy, with no adverse personal or family lifestyle risks ie; these could all affect any initial ‘life insurance price’ based quote.

For example, a person quoting UK Insurers then advise at application stage that they have recently been diagnosed with raised cholesterol, blood pressure or are overweight with a raised BMI Kg.

This means the Insurers could now decide to health rate risk or increase their prices for life insurance by say 50%+ or more against their average standard price comparison deals.

Also, you will clearly see in our sample tables below that the older you get (especially much later into life), then the more expensive the monthly premium cost becomes.

What we have not sampled either here (but the same rule applies) is that the higher the life cover amount, or the longer the policy term, then also the more expensive the cost is.

Average Cost of Term Life Insurance Level (Non Smoker)*

Cover £TermAge Cost
100,00020 yrs25£4
100,00020 yrs30£5
100,00020 yrs40£8
100,00020 yrs50£18
100,00020 yrs60£54
100,00020 yrs70£171
Average Monthly
UK Average Life Insurance Cost by Age

Average Cost of Term Life Insurance Level (Smoker)*

Cover £TermAge Cost
100,00020 yrs25£6
100,00020 yrs30£9
100,00020 yrs40£18
100,00020 yrs50£50
100,00020 yrs60£151
100,00020 yrs70£394
Average Monthly
UK Average Life Insurance Cost by Age

what's average cost of life insurance uk
average price of life insurance

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UK Average Cost of Life Insurance

for £100,000 over 20 years was £12.43pm*

£100,000
20 years
None
Smoker
Cheapest
Product
UK
Insurers
Person
Age 45
Monthly
Cost
AIG=£12.36
Aviva=£11.12
Legal &
General
=£10.86
Liverpool
Victoria
=£12.18
Guardian
1821
=£11.32
Royal
London
=£13.15
Scottish
Widows
=£13.06
Vitality
Life
=£10.93
Zurich=£16.89
Average Cost =£12.43pm
UK Average Life Insurance Non Smoker* 4/4/23

What is Average Monthly Life Ins cost?

What is the average monthly Life Ins cost? We have sampled a typical 45 years old person (male or female) non smoker, in good health. For that 45 year old, the uk average cost of life insurance for £100,000 over 20 years was £12.43pm* (4/4/23).

But we can also see that the cheapest deal quoted at the time was Vitality Life at £10.93pm, and the most expensive was Zurich Insurance quoting £16.89pm

This study however was based on only using the Insurers cheapest product deals, whether variable or fixed premiums & with no additional extra cost policy features included.

We therefore did not try to compare all of the many of the Insurers other plan types to simplify this process.

What does this all mean & are you really comparing like for like on initial price quotes alone? Let’s have a closer look then.

Well, this meant for Vitality Life we were quoting their cheaper health related optimiser plan at £10.93pm. This plan type requires you regularly interact daily with the Insurer to confirm your health and thus optimize your premiums upto 40% over the whole 20 years policy term.

If you don’t maintain your regular exercise & activity at age 45 for whatever reasons over the next 20 years upto age 65, then their prices will be reviewed & your premium may then regularly increase accordingly.

However, their fixed premium Vitality Life plan at the time of study was also quoting £13.12pm. The premiums on this Vitality plan here are guaranteed (so unlike their other cheaper plan) this means they are non reviewable.

This could mean it maybe an alternative option at age 45 if you are concerned over 20 years you may not be able to regularly exercise daily or interact with Insurers.

Or for example in our study re cheapest deals, here Aviva we were just quoting their no frills basic simple life insurance plan at £11.12pm. This has no real rider benefit options.

However, their more comprehensive Aviva Life Insurance+ product is offering access to additional cost benefits like premium waiver, total permanent disability, fracture cover or global treatments was now quoting instead an average life insurance cost from £13.25pm.

Guardian 1821 life insurance was not the cheapest product at £11.32pm but their policy includes automatically a comprehensive waiver of premium benefit, and at no extra cost. As already mentioned above, premium waiver helps protects your life cover policy premiums if you are off work longer term re sickness or accident etc;

This is unlike any of the other Insurers quoting who if comparing the average life insurance cost, may charge you extra for this valuable waiver of premium benefit at the time of this study.

For example, some Insurers can offer this feature after say 4 weeks eg; Royal London or Aviva. Other Insurers also offer this waiver benefit but only after a 26 weeks wait period eg; AIG, Legal & General, Liverpool Victoria, Scottish Widows & Zurich.

Or some Insurers allow you add child critical illness cover benefit onto your life insurance as well, for a small extra cost. This could be an option you also wanted to include but were unaware of, if only checking on the ‘average life insurance cost’?

We can therefore see that all those headline average priced quotes seen, maybe not a true judge here. To better clarify more on how we calculated some other average cost of life insurance, we will carry on to explain more on our case findings for another age profile group.

So, in another one of the examples above, the ‘cheapest price quote’ at the time of our case study for a typical £100,000 term life insurance costs uk for a 60 years old person (on smoker rates) over 20 years was around £110pm.

However, at the time the most ‘expensive price quote’ for this cost of term life insurance cover for a 60 years old person (also on smoker rates) life insurance deal was over £190pm.

This therefore gives you a calculated median average premium on how much for life insurance per month of around £150pm.

It also gave us a wide price spread of over £80pm difference between the cheapest product quoted & most expensive indication quotes (rather than an average life insurance cost).

As such, using statistical averages here may not be smarter insurance approach to base your research on. As Mark Twain supposedly said ‘lies, damn lies & statistics’.

So as you may see all the UK Insurers plans & prices vary so much, that we always suggest that you do your own research comparison online life quotes here initially.

Then afterwards, we recommend that you kindly speak to a professional adviser about your own individual situation needs if unsure.

In conclusion here, all underwritten term life insurance plans we have quoted in this example case study will insure you fully – but only after acceptable underwritten terms are then agreed. Everyone’s quotes for finance position is unique to them – not an average.

Tree of life | Insurance for death

Whole of Life Insurance Average Cost UK

Let’s now look instead at the marketplace for underwritten over 50’s whole of life costs average pricing of life insurance.

This comparison study is for guaranteed premium style whole life cover only (ie; that are not investment backed).

We have also focused on average pricing for medically underwritten plans, not ‘no medical’ over 50 style policies.

Note; when comparing life Insurance how much per month premium costs are for whole of life cover, then invariably they are more expensive than term life cover.

Why? The reason being that whole of life assurance plans = will always payout whenever a death occurs. (as long as all policy terms & conditions are made).

So, they are unlike term life cover that just runs for its selected time periods ie; up to say age 75, age 85 or age 90 for example.

Whole life policies may continue on indefinately until a death claim is made ie; you die after age 110 after getting birthday cards from the monarchy.

The example life insurance average cost for whole lifecover ‘re our price tables also as mentioned only relate to fully medically underwritten policies ie; they do ask you up front for full health & lifestyle questions.

As long as you are relatively fit and healthy for your age, you may then be offered terms immediately. Alternatively, it can involve GP reports & nurse medicals beforehand, as the underwriting risks are higher for whole of life assurance (as it will payout).

Average Over 50’s Whole of Life Cost (Non Smoker)*

Cover £Age Cost
£100,00050£147
£100,00055£154
£100,00060£188
£100,00065£230
£100,00070£312
£100,00075£425
£100,00080£589
Average Monthly
UK Average Life Insurance Cost by Age

Average Over 50’s Whole of Life Cost (Smoker)*

Cover £Age Cost
£100,00050£170
£100,00055£199
£100,00060£250
£100,00065£332
£100,00070£427
£100,00075£562
£100,00080£803
Average Monthly
UK Average Life Insurance Cost by Age
average life insurance cost per month  for whole life insurance

Note: The policies quoted above are as mentioned for fully underwritten whole of life assurance. As such, they are unlike the more limited benefit over 50’s life cover with no medical.

These types of schemes are more basic as they sound, so may ask you no full health & lifestyle questions (other than maybe smoker status).

Because of this more basic approach, No medical Over 50’s plans typically also may have 1 or 2 year initial up front exclusion on full death claim periods.

Generally, on no medical Over 50’s policies Insurers may also limit premiums paid per plan to no more than £75/£100pm.

As such, you may find these no medical life cover plan levels offered are much lower than fully underwritten policies.

On average, these no medical plans could be more beneficial for those typically who could be declined affordable medically underwritten whole life cover, as they do suffer adverse health & lifestyle issues.

In conclusion here, underwritten whole of life plans we have quoted in this example case study will insure you fully – but only after acceptable underwritten terms are then agreed.

Critical Illness Average Life Insurance Cost Monthly

We will now turn to looking at the average cost for life insurance per month, if you also then include critical illness coverage.

Critical illness or Serious Illness is an insurance policy that pays you a tax free payment by Insurers upon diagnosis of specified definitions of illness.

These example case tables below are based on a first claim basis ie; a critical illness is paid as first to occur (instead of a death claim benefit) so then the plan ends.

This is usually a cheaper priced deal than a more expensive quote with additional sums payout ie; If you were critically ill first it pays out, but you still retain your life cover & critical illness afterwards.

According to the Association of British Insurers ABI, the top 3 benefit payouts the average life insurance and critical illness cost UK Insurers for are types of cancer, heart disease & stroke*.

As such by now including critical or serious illness protection as well, then the likelihood of a potential claim payout is much higher.

So therefore the life insurance costs average price difference is now much more expensive more than just a standalone life insurance policy.

Working out how much is a life insurance policy here is also harder to compare prices exactly ie; Some basic critical illness policies may only just cover well women or well man types of cancer.

Other Insurers instead cover say at least these core critical illness types ie; Cancers, Heart disease or Stroke and maybe Multiple Sclerosis etc;

However, other Insurers plans may cover you from 50 to well over 100+ and with multiple claim options. The higher the policy coverage, generally the more expensive the premium is.

For reference, this specific type of policy was invented by Dr Marius Barnard, the father of critical illness. He was also the brother of the original heart pioneer Dr Christiaan Barnard.

Average Critical Illness Life Insurance Costs (Non Smoker)*

Cover £TermAge Cost
100,00020 yrs25£26
100,00020 yrs30£33
100,00020 yrs40£64
100,00020 yrs50£138
100,00020 yrs60£278
Average Monthly
UK Average Life Insurance Costs by Age

Average Critical Illness Life Insurance Costs (Smoker)*

Cover £TermAge Cost
100,00020 yrs25£33
100,00020 yrs30£46
100,00020 yrs40£108
100,00020 yrs50£248
100,00020 yrs60£473
Average Monthly
UK ‘Average Life Insurance Costs’ by Age
average monthly life insurance cost uk broker deals

Critical illness cover may pay out a tax-free lump sum that you can use, however you wish.

You could use it to help repay all or some of your mortgage or secured home improvement loan?

Or maybe help to cover monthly expenses or health-related recovery costs? Perhaps toward lost income whilst you recover (although income protection maybe a better longer term policy in that respect).

As such, it becomes harder to determine the average price of life insurance with critical illness now included, as it is not a level playing field.

Note; We have excluded more basic plan prices in these critical illness average case study tables.

Critical Illness vs Terminal Illness Life Insurance Cost

  • Critical Illness as explained, may pay out claims crucially upon diagnosis and then survival of the specified illness
  • Therefore Critical Illness means you may live, survive & claim.
  • Some Insurers allow via both Critical Illness & Life plans critical cover for your children also
  • Critical Illness or Serious Illness cover claim statistically is more likely to happen in life
  • Terminal Illness however is often included for ‘free’ as part of a life cover.
  • It usually means a GP consultant has advised you could have less than 12 months to live
  • Terminal Illness means you will not therefore survive long term after a claim
  • Once agreed by Insurers, they may then payout this policy death claim but in advance
  • Note: critical illness and life insurance cover plans can often be combined or seperate

Conclusion: Typical life insurance costs monthly with critical illness now included, our average price tables shows there is a much wider discrepancy as to just pricing life insurance stand alone.

For example: £100,000 ‘average cost of critical illness cover uk’ life Insurance over 20 years for a 40 year old non smoker = £64pm.

Whereas, for that same person the average life insurance policy cost (but now without critical illness added) = £8pm.

Therefore the difference in cost benefits between adding critical illness onto the policy needs to be then understood against just having a single life insurance but without critical illness added ie; statistically you more likely to a claim payout due to a critical serious illness and then survive, than death.

Critical Illness Cover UK claims
* Vitality Life stats

10 Key Factors affecting ‘How much on average is Life Insurance’?

These 10 key factors (in no particular order) that affect how much on average is life insurance are….

  1. Age
  2. Smoker Status
  3. Personal Health
  4. Family Medical History
  5. Occupation or Job
  6. Risky Pastimes or Hobbies
  7. Amount of Cover
  8. Level, Increasing or Decreasing Plan
  9. Policy Term
  10. Age costed or fixed premiums

Combined together, the Insurers will assess & offer their terms to you based upon these 10 key factors.

We recommend as brokers ideally cover with non reviewable or guaranteed premiums – if you are concerned about budgeting.

Check carefully therefore if you are offered an initially cheaper policy quote but based on the average cost of life insurance by age.

This means potentially as you get older, the premiums on some of these cheaper plans will also increase annually according to UK Life Insurers charts. However, the life cover may still remain the same or even go down (if you do not wish the premium to rise).

Or if comparing the average cost of life insurance for mortgage, consider the policy interest rate it decreases at. This is also harder to accurately determine over the full mortgage term of say 25/30 years+ due to fluctuating interest rates..

For example, if your repayment mortgage interest rate is say 4% fixed for 5 years but then increases to 5% or more (but the life policy decreases at only 4% fixed). Then potentially there will not be enough lifecover as it reduces later on, to then fully cover the mortgage if you died.

As such, if comparing the ‘Life Insurance Average Cost UK’ for each type of plan, ensure you are comparing like for like here. Please speak to a professional adviser about your individual needs if unsure.

what is average life insurance cost uk

Term v Whole Life – How much should Life Insurance Cost?

So as mentioned above, term life insurance plans are designed to run only for their specified time periods eg; 20 years / 25 years / 30 years / 40 years etc;

However, the more expensive pricing for the average whole life insurance cost here reflects that this life cover policy type is continuous ie; term life insurance v assurance whole of life coverage.

For example, let’s use the above average life insurance cost per month uk tables for a person aged 70 years old.

A non smoker for £100,000 life cover would pay £171 pm on average for 20 years term insurance upto age 90.

Or, if that same 70 years old person were now looking instead for whole of life assurance cover. They could then pay on average £312pm for your typical life insurance cost uk policy ie; nearly double the costs.

As such, the average term life insurance cost may seem relatively cheap against its whole life assurance competitor, as the Insurers know their risk will end after age 90. After that, they have no more liability as the plan has ended.

You have to ask yourself therefore, do you need full ongoing whole of life protection coverage for your family situation beyond age 90.

Note: average life expectancy in the UK is early 80’s. Or, would you settle instead to have a back up term life plan just up to age 90, as a sufficient life stage for your financial plans?

So if comparing how much is life insurance on average here, you pays your money & takes your own choice as the saying goes, when comparing average whole life insurance rates by age v term life cover.

life expectancy uk calculator | average cost of life insurance per month
Average Life Expectancy UK

Level v Decreasing Term – Average life insurance policy cost?

Level term life insurance is a policy (where just as it sounds) the protection benefits remain level for their term.

These are typically used for family protection cover to ensure dependants are fully covered.

For example; If you took out a £100,000 family level life cover over 20 years, then even if a claim was made in year 18, it would still payout £100,000.

As such, insurers price their products here to reflect this ongoing £100,000 insurance risk on death.

Alternatively, decreasing term life insurance is a policy (where just as it sounds) the protection benefits decrease over their term. However, the premiums usually remain level, even if that life cover reduces.

These are typically used for mortgage protection cover to protect a repayment style mortgage loan.

For example; If it was a £100,000 mortgage decreasing life cover over 20 years, then if a claim was also made in year 18, it would now payout around say £10,000.

This would then help to cover say that remaining £10,000 repayment style mortgage loan and to ensure that balance was repaid

So the average cost of life insurance for mortgage cover is usually cheaper than level cover here, to reflect this reducing insurance risk on death.

Likewise, any family income benefits style policy is also essentially a decreasing type of life cover.

So value for money wise, family income benefit plans are often cheaper than their level term life insurance counter parts for family protection.

Note; if you are comparing online on our website how much should life insurance cost uk rates – our systems will automatically allow you to compare level v decreasing rates.

You can also compare the average cost of life insurance with critical illness included, for both level or decreasing cover.

Sort your uk life insurance quotes | average cost for life insurance per month > 15 secs

‘How much Life Insurance do I need?’

So having examined various average life insurance costs per month, we now need to look at ‘how much do I need for life insurance’ to help protect yourself & family.

The Money Savings Expert (MSE) Martin Lewis re Life Insurance says as a good rule of thumb is to consider using their ‘10 x RULE’ ie; 10 x annual salary.

MSE says try and aim to help cover 10 x the Annual income of the highest earner or main breadwinner. This could be until at least any children have hopefully finished their full-time education. 

However, if using their Best Life Insurance formula they also suggest that to help better calculate a figure that may work for you & your family consider the following issues…

So they say it is worth ensuring any life policy also covers these following main 4 finance items:  

  1. Outstanding debts that you would need paid off ie; include mortgages, loans, credit cards etc; unless they are covered by a separate life policy already
  2. Immediate outgoings ie; what your dependants would need to regularly pay the bills
  3. Future spending you may wish to make ie; educational costs for your kids
  4. Any additional expense that your death may then trigger ie; funeral final expense costs

They also suggest & check if your work offers any employee life insurance benefits.

MSE do go on to point out that this 10 x the highest earners annual income may seem a high amount. It could cause you to then ask, how much does a life insurance cost for this calculation.

This is also based on your affordable average life insurance cost per month budget. This premium could then be affected given any adverse personal or family health lifestyle issues that could maybe increase this cost.

However, they also say it is likely to then leave enough money (after the impact of rising inflation) to help cover any lifestyle payments, expenses or any ongoing childcare costs.

The Money Savings Expert (MSE) states it could also go some way to help supplement the incomes of those left behind if considering ‘how much life insurance should I get’.

For example, if a partner had to unfortunately then leave their own employment, factor this is when working out how much should I pay for life insurance ie; to help for ongoing care for any dependant children or relatives. 

So in conclusion here, there is no real average cost of life insurance per month for then working out how much life insurance is needed.

Everyone’s situation is unique and you may all be in different stages in your life re how much life insurance should you have.

life insurance costs average | uk broker deals

On Average ‘How much do I need for Life Insurance’?

To help answer this question, we have therefore used their Money Savings Expert (MSE) principle above, and assumed you earned for example £26,000pa gross salary.

MSE says if asking ‘how much do I need for life insurance’ you should maybe consider insuring yourself (assuming after any mortgage, loans & debts are also fully repaid) for say £260,000 life insurance (ie; 10 x the annual gross income).

You could therefore perhaps base some of your initial life quotes on their MSE life cover example, for how much life insurance cover do I need?

Following on from their simple example formula above, if you are in your late 20’s and then worked for say the next 39 years until retirement, you could potentially earn over £1 million gross.

This figure is based on average £26,000pa salary x 39 years [or more with any future inflation salary wage rises].

‘Life Insurance Average Cost Per Month UK’

We have based this average UK salary figure on £26,000pa – because average UK incomes for men between age 22 and 29 was £26,856pa in 2021, and for women it was £25,115pa.

Note: For all workers in the UK, the overall average UK salary is estimated to be around £38,600pa full time & £13,803pa for those working part-time.

If you are then trying to work out some typical life insurance average cost per month uk policy types, you may therefore have a few options.

So unlike this 10 x £26,000 gross salary life insurance – as Financial Advisers we suggest you could instead protect your family with either;

  1. Income = £2,166pm or £26,000pa family income benefit lifecover policy
  2. Lump sum = £1 million level term life insurance policy [if invested @2.6% = £26,000pa]
  3. Or a mixture of the 2 policy types over the next 39 years – all dependant on your family circumstances

Neither of these examples also takes into account repaying as mentioned any mortgagesloans or debts. So, as they said factor those in as well re calculating ‘how much life insurance do you need’.

  • You can decide wether you want the cover to be level or inflation linked
  • Single plan | 2 x seperate plans | Joint life insurance 1’st claim | Lump Sums or Family Income Benefits options

Even when you retire, you may still be asking how much is life insurance a month at my age. The need for some form of life insurance protection back up plan is perhaps always there.

For example, if one person is much older than their partner & they die just as they retired. Then their surviving partner may still live on for another say 25 years and have to cope financially.

That partner may not inherit any pension rights or be either entitled to get some of their late partners long term state pension benefits.

In other words, every persons situation maybe unique when asking how much is average life insurance cover & how much life insurance do I need UK 2020’s currently.

So consider that apart from losing a loved one & breadwinner, this real hidden income threat is what could be lost if the main earner died prematurely, when asking yourself how much does life insurance cost.

what is average life insurance cost uk

Does Gender affect ‘How much should Life Insurance cost’?

Before an EU 2012 gender ruling, women paid their own gender specific priced rates.This was much less than men for their own life insurance costs average & based on the simple fact that statistically a woman may live around 3 years + longer.

ie; the average life insurance cost for single female pre-2012 was cheaper than what is the equivalent average life insurance cost for a single man. The same gender rates applied also for health related insurance cover & some other gender priced insurance products.

However, since 2012 gender neutral pricing now applies in the UK on how much for life insurance per month costs ie; Women now pay the same as men for a typical life insurance cost uk deal.

So even as a couple, if you are checking out the difference between say the average cost 1 million life insurance or the average cost of 500k life insurance for either person, technically the price for both genders is the same.

If you are therefore a woman reviewing any single or joint life policy that you may have taken out before this 2012 ruling (other than the fact that you are much older) you will find a cost difference re the average price on how much for life insurance policy for women has now risen.

Conversely, as the average monthly life insurance cost uk price for men’s health remains the same as for women due to these gender neutral insurance price rules, even though we have now left the EU and post Brexit.

These gender neutral rates (which also apply to private health insurance) currently seems unlikely to change again & revert back to pre-2012 insurance prices, perhaps due to costs of change etc;

Naturally, this question of gender and single pricing re how much does life insurance cost uk for men and women could all change again in the future?

what's average cost of life insurance uk
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Average Payout for Life Insurance?

The average life insurance payout upon death naturally varies between UK Insurers & their individual claims records.

According however to the ABI* Association of British Insurers, the average claims payment in the early 2020’s were as follows;

  • Average Term Life Insurance Claim paid = £80,485 
  • 97.3% of claims average life insurance payout uk paid
  • Average Whole Life Insurance Claim paid = £4,125 
  • 99.9% of claims average life insurance payout amount uk paid
  • Average Critical illness Claim paid = £67,951
  • 91.3% of claims average critical illness paid

The ABI said probably due to the Pandemic, that it was the 3rd year in a row that what is their stats re average life insurance payout uk has steadily increased.

The UK average value for a claim they reported was also up 9% on year 2020 or £14,994 per as to how much is the average life insurance policy claim worth.

Total UK Payouts during the Pandemic 2020’s for Covid-19 related individual death claims almost doubled in 2021 they said to £261 million (despite the number of claims paid they said remaining almost identical to 2020).

This was due to a 69% increase in term life insurance claims, where the ABI said typically how much is the average life insurance payout was now £69,760 with 98% of claims accepted.

However, if you are then working out ‘how much life insurance do I need’ is this average figure amount from the ABI really going to help look after your family, if this was all they had to rely on?

In conclusion here, the ABI said UK average life insurance policy payout for bereavement, illness, and injury claims currently topping around £18.6 million+ per day.

Average Life Insurance UK claims | Uk Life Insurance Quotes > 15 secs
Balance these stats versus how much does the average life insurance policy cost

Typical Life Insurance Cost UK Smokers?

If we now take a look at the typical life insurance cost uk smokers pay, and then view our various example price tables above, we can see the true financial impact & benefits of quitting smoking.

For example, a 50 year old smoker pays on average £50pm for £100,000 term life insurance over 20 years. However, as a non-smoker that same aged 50 years old person would only pay £18pm.

If we look at including critical illness also, then as another example a 40 years old smoker pays on average £108pm for £100,000 term life insurance over 20 years.

However, as a non smoker then (with critical illness also included) how much is life insurance per month uk payers would now be charged on average £64pm.

In conclusion here, naturally both the financial & physical benefits of giving up all types of smoking could help you to perhaps quit altogether.

Typical Life Insurance cost UK smoker ?

‘How much are Life Insurance policies’ | Joint v Single?

On average, if comparing how much are life insurance policies between having joint and single life, then the average cost of joint life insurance policy (so covering 2 lives now, rather than 1 life only) will be logically more expensive.

A joint life policy for say mortgage life protection via many insurers means it will pay out on the first death only and then end ie; repay the mortgage that it is protecting.

Typically, many mortgage brokers may set up plans this way when arranging various quotes for finance around the mortgage.

However, if you are comparing the average cost between having a joint life policy versus 2 x seperate single plans (or dual life plans) for family life insurance cover, then the small extra cost maybe worthwhile.

For example, you are an unmarried couple with 2 young dependant children and rent a property. You are perhaps concerned that if one parent died, then your average life insurance for a family of 4 should cover both sets of parents seperately, not jointly.

If this was the case, we also recommend as finance brokers that any seperate life policies are written into trust to ensure their proceeds go to nominated beneficiaries & also help avoid probate delays on death.

In conclusion here, the average cost of life insurance per month for one person each (versus the average joint life insurance cost uk) means for that small extra cost, you could then have double the life insurance coverage for peace of mind.

For example: If you took out 2 x seperate £100,000 life policies and you sadly both died in an accident, it would then payout £200,000 total. Whereas a £100,000 joint life cover would only payout a total £100,000 on 1’st death.

Likewise, the average life insurance and critical illness cost uk joint policy will usually also be cheaper than 2 x single plans as well, because it just pays out upon the 1’st to claim.

insurance vs assurance uk
how much is the average life insurance policy | uk broker deals

Can you have more than 1 Life Insurance Policy?

Yes, you can you have more than 1 life insurance policy. In fact you can have on average several policies if you wish and for different reasons.

For example, you may wish to take out a decreasing life policy for your mortgage and another family income benefit life plan to perhaps cover you until the kids leave education.

Most Insurers however will ask how much protection cover you have overall especially if this is across several insurers. The reason being is they are checking if you are perhaps over insuring yourself, rather than can you have more than one life insurance policy.

Average Life Insurance policy into Trust?

Many people we speak to, do not consider this aspect at all when looking at getting their cheap life insurance deal. However, we will now explain why trusts are potentially very important & a possible costly mistake if ignored.

Put simply ensuring the average life insurance is setup into trust automatically then tells the Insurance Company who you want to get the money if you sadly died. It also advises who will deal with the paperwork.

Placing your policy into ‘trust’ may also help to avoid probate delays & Inheritance Tax IHT. Without a suitable trust, the life policy could potentially fall back into your estate again.

So a life policy trust ensures it should go direct to you nominated beneficiaries via the trustees hopefully when most needed. This situation applied no matter how much is the average life insurance policy payout & even if you have made a valid up to date uk will.

For example, although life insurance benefits are currently paid out tax free, if then paid directly back into your estate, the HMRC tax man could claim possibly 40% of the proceeds if not maybe setup into a suitable trust.

In that instance, the real average cost of life insurance per month uk inheritance tax paid could be very expensive.

Most Insurers do supply free a good range of generic life protection trusts, ideal for many client situations. If unsure, seek legal advice re your own position.

average price of life insurance
what is the average life insurance cost per month | uk broker deals

Life Insurance Cost of Non-Disclosure & Claims?

All Insurers are in business to protect, insure & payout. Mention must therefore be made on checking re what’s the average cost of life insurance that this is also based on your full disclosure at the time you take the original policy out ie; being 100% as honest & accurate as possible.

It is not always easy to remember all your historic health details when applying. However, as always how much is average life insurance per month will vary based on your various application answers here.

The Consumer Insurance Act 2013 says you must not be acting careless, deliberate or reckless manner when applying. If so, it may not payout ! eg; If you vape but its non nicotine smoking products, then you must tell them you are smoker (even if it costs more).

Should you make a claim, your Insurers will send you a claim form for you to complete. Once received back, they will usually contact your GP to confirm any health details.

They will then assess if your potential insurance claim is valid and cross check if you originally disclosed all the correct details at the time of application.

If you look at most Insurers recent claims payout around how much is a normal life insurance policy, you will see that it is Good (but like most Insurers – not 100% re any average life insurance policy cost claim).

Or in other words, your average life insurance coverage claim could be declined on a death, if the Insurers feel you may have deliberately misled them from outset eg; don’t tell them of a family history of heart disease.

We advise as brokers as best as possible…tell the truth, the whole truth & nothing but the truth, as the legal saying goes.

Average Cost for Life Insurance per Month?

Health or lifestyle changes after taking policy out?

Any future health or lifestyle changes since the initial application, usually does not void your average life insurance cover deal originally offered.

As long as you honestly at the time disclosed the insurers all the correct information & to the best of your knowledge. Insurers would then fairly offered you what is the average life insurance policy rates at the time.

Or, it could be due to any adverse health or lifestyle insurance risks, this was then increased to accurately reflect how much is average life insurance UK Insurer will then offer you.

If it wasn’t relevant at that time of your original underwritten insurance application, then that’s okay eg; a few years later on you are then diagnosed diabetic or move jobs to a high risk occupation.

You may wish to tell the Insurers this information anyway, but this should not affect their original decision (if not relevant at that time).

It maybe the Insurers requested GP reports when you originally apply, to check any health details you directly disclosed. Likewise they may not do so.

Any further updated GP information or medical nurse screen tests post application are not usually needed or affect how much is life insurance on average uk deal you originally received.

So take care to doubly re-check on your application what you first disclosed to the Insurers. This information then stands both now and in the future. Please check your original T&C’s.

Conclusion on ‘Life Insurance Average Cost UK’

We hope this gives a comprehensive background brief into what makes up the average life insurance cost per month, which we found is around £39pm across the average life insurance types.

More importantly, it also lays out clearly that everyone’s personal and family situation is probably unique to them. Hence as advisers, we would say there is no one single average cost policy for everybody.

More importantly, also why you should consider taking protection insurance out ie; If any family members are dependant on you, then you know it makes good financial & emotional sense

Please check out & Compare Online our Broker only price on life insurance here.

‘Life Insurance Average Cost UK’ Article by Martyn Spencer Financial Adviser (2024)

For reassurance re health for men & women we review many of the best brands selling Life Insurance in UK (inc NI)