£100,000 life insurance policy (what is the cost in 2023?)

One of the most frequently asked questions by applicants is ‘how much is a £100,000 life insurance policy?

Whilst the answer to this question can vary, depending on the insurer and your personal circumstances, it’s possible to secure up to £100,000 of life insurance cover from just £3.50 per month through Reassured^.

Life insurance policy key points:

  • Pays out a cash lump sum (sum assured) if you pass away during the policy term (for example £100,000)
  • Pay out could help to cover essential costs such as mortgage payments and living expenses for your loved ones, as well as the cost of your funeral
  • You’ll need to pay a monthly life insurance premium in order to keep your cover valid
  • There are a range of policy types to suit different needs and budgets
  • It can be possible to secure up to £1,000,000 of cover through Reassured

Compare life insurance quotes through an FCA-regulated and award-winning broker, such as Reassured.

Comparing multiple quotes can allow you to find the right policy for your needs, at our best price.

All quotes through Reassured are personalised, fee-free and no-obligation, so why not get in touch?

What could £100,000 life insurance cover?

£100,000 of life insurance cover could help to protect a variety of financial commitments for your loved ones and other costs, including:

Re payment mortgage house

Mortgage payments - Depending on your remaining mortgage balance, life insurance could help to pay off the mortgage in full or allow loved ones to keep up with monthly repayments.

Childcare cost baby

Additional childcare costs - If you were to pass away, your partner may need to reduce their work hours to provide childcare or pay for additional childcare services. A life insurance pay out could help to cover their missing income or provide funds for the additional fees.

Family living

Family living costs - A life insurance pay out could help to allow your loved ones to continue with their current lifestyle, without the need to make cutbacks or changes.

Debts

Outstanding debts - After your passing, any outstanding debts in your name will be claimed from your estate. Leaving an additional sum in your life insurance pay out means your loved ones won’t miss out on savings which were intended for them.

Funeral

Funeral costs - The overall cost of dying in the UK is currently £9,200 (with a basic funeral costing £3,953)[1], life insurance can help to cover these fees so your loved ones aren’t left out of pocket.

Inhertiance

An inheritance - Many choose to leave a cash gift for their loved ones in the form of an inheritance. Funds from an inheritance can be spent however loved ones see fit and could allow them to make a big purchase or simply allow them to be more financially comfortable.

Speaking to a life insurance expert can help you establish your reasons for needing cover, allowing you to make an informed decision about your life insurance policy.

If you’re struggling to work out how much life insurance you need to leave, why not enter your financial commitments into our handy calculator below to estimate your cover amount?

Do you need £100,000 of life insurance cover?

Enter your financial commitments below to work out whether £100,000 life insurance is sufficient for your needs.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk

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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk

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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk

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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk

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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org

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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk

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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net

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Your total cover estimate

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Let us help you find our best quotes

How much does £100,000 life insurance cost?

The monthly cost of a £100,000 life insurance policy will depend on the policy type you take out and your personal circumstances.

The price you pay for life insurance is based on the level of risk you pose to the insurer; the higher the risk, the more you’ll pay for your cover.

How much cover you take out is a factor that can influence the price you pay, as well as:

These factors will be assessed during the application process and your life insurance premium will be calculated accordingly.


Below you’ll find example quotes for a £100,000 life insurance policy from Aviva, AIG and Legal & General. Quotes are based on a non-smoker in good health for a level term policy with a 30 year term.

Age Aviva AIG logo Legal & General
20£3.50£3.65£4.99
25£4.22£4.59£4.99
30£5.51£5.54£5.55
35£7.41£7.40£7.67
40£10.82£10.65£11.38
45£17.41£16.36£17.34
50£26.50£27.04£28.26


As you can see from the table above, the price you pay for £100,000 of life insurance cover can vary between different insurers.

To find our best rates for a £100,000 life insurance simply contact us today for your free quotes.

We work with a panel of insures, including some of the UK’s best life insurance providers.

What is the average price for life insurance UK?

The average price for life insurance depends on your personal circumstances and the policy you take out.

However, using our internal sales data we can provide the average monthly premium for policies we helped arrange in 2022:

Policies with a sum assured of £75,000 - £100,000Policies with a sum assured of £100,000 - £125,000
Average premium price£37.83£40.58

This data has been calculated from 5,025 life insurance policies with a sum assured of £75,000 - £100,000 and 12,492 policies with a sum assured of £100,000 - £125,000, sold between 01/03/22 and 01/02/23

While this is the average price for life insurance, this may not be the price that you pay.

The cost of life insurance can vary significantly from person to person as your personal circumstances will be taken into consideration to calculate your monthly life insurance premium.

Comparing quotes can help you to secure an affordable policy that meets your needs. Contact Reassured today for your free quotes.

Read more about the average life insurance cost UK in our in-depth guide »

Do I need a £100,000 life insurance policy?

Whether you need a life insurance policy with £100,000 of cover will depend on your personal circumstances and what you’d like to cover.

By assessing what aspects of your life you’d like to protect (such as the ones listed above) you can estimate how much cover you’re likely to require.

For example: remaining mortgage balance + family living costs (until children reach financial independence) + funeral costs = required sum assured.

It may be that you require more or less than £100,000 of cover. Everyone has different needs and different reasons for securing life insurance, so cover amounts can vary significantly between applicants.

£100,000 life insurance policy options

If you’re looking to secure a life insurance policy with £100,000 of cover, there are multiple options available. These include:

£100,000 level term life insurance

£100,000 level term life insurance

Level term life insurance provides cover for a specified period (up to 40 years) and will pay out if you pass away during this time.

  • Cover amount remains level (the same) throughout the policy term
  • Can help to protect a mortgage and/or other large debts
  • Ideal for young families who want to cover living costs
  • Sum assured can be up to £1,000,000
  • Compare quotes through Reassured
£100,000 decreasing term life insurance

£100,000 decreasing term life insurance

Decreasing term life insurance provides cover for a specified period (up to 40 years) and will pay out if you pass away during this time.

  • Cover amount decreases throughout the policy term
  • Can help to protect a repayment mortgage (sum assured can reduce at the same rate)
  • Ideal for those on a budget
  • Sum assured can be up to £1,000,000
  • Compare quotes through Reassured
£100,000 whole of life insurance

£100,000 whole of life insurance

Whole of life insurance provides cover for the rest of your life, guaranteeing a pay out to your loved ones when you pass away.

  • Pay out remains level throughout the policy lifetime
  • Can help to provide an inheritance and cover funeral costs
  • Well suited to those in later life who are in good health
  • Sum assured can be up to £1,000,000
  • Compare quotes through Reassured

Due to the guaranteed nature of whole of life insurance, premiums for a £100,000 life insurance policy are likely to be much greater than with a term life insurance policy. However, this isn’t to say premiums can’t be affordable.

The option that’s best for you will ultimately depend on what you’d like to cover and your available budget.

Comparing quotes through Reassured can help find the right policy for your needs at an affordable price. Simply get in touch today for your free quotes.

Can I get a £100,000 life insurance policy with no medical checks?

It can be possible to take out £100,000 life insurance with no medical exam.

It’s unlikely that insurers will request for you to undergo a medical exam when taking out life insurance.

However, they have the right to do so if they deem it necessary (for example, if they need to get a better understanding of your current health and wellbeing).

Insurers also have the right to request your medical records from your GP, but your records can only be released with your permission.

Whilst you may not be required to undergo a medical exam when securing £100,000 of life insurance cover, you’ll need to answer medical questions during the application process.

This is part of the standard application process and will allow insurers to assess your level of risk and calculate your monthly premium.

How much is £100,000 life insurance for seniors?

For seniors, over the age of 50, the most popular form of life insurance is an over 50s plan.

Unfortunately, with this policy type, the maximum amount of cover you can secure is up to £20,000.

Over 50s plans don’t require you to provide any medical information and guarantee acceptance to those aged 50 - 85. Therefore, to compensate for the unknown risk, cover is capped at a lesser amount.

It’s still possible to secure term or whole of life insurance (with a potential sum assured of £100,000) in your senior years. However, your age and health will influence the price that you pay.


Below are example quotes for a level term life insurance policy (10 year term) for £100,000 of cover. Quotes are based on a non-smoker in good health:

Age£100,000 level term price per month
50£12.45
55£18.41
60£30.94
65£45.75
70£80.85
75£160.81


As highlighted by the table, the price you pay for life insurance can increase significantly as you get older.

For this reason, it could be beneficial to secure cover before your senior years. For example, taking out life insurance in your 40s could be more cost effective than getting £100,000 life insurance at 60.

Alternatively, comparing quotes can help you to find the most suitable life insurance for seniors, why not let Reassured help you to do this?

Can I buy £100,000 life insurance online?

Yes, it’s now possible to buy life insurance online via some insurers, comparison sites and brokers.

If you’ve conducted your own research and you know that £100,000 is right for your needs, you can quickly and easily compare quotes using our online journey.

This allows you to secure cover at a time and place that suits you.

Why not check out our dedicated buy life insurance online page for more information?

If you’d prefer to speak to someone, a friendly member of our team will be happy to talk through your needs and provide you with all the information you need. Simply get in touch.

How much would a £100,000 life insurance pay out?

If taking out £100,000 life insurance, this will be the amount that’s paid out to your loved ones upon your passing.

With most life insurance policies your pay out amount remains level, this means it remains the same throughout the policy lifetime.

The exception to this is with decreasing term and increasing term life insurance:

  • Decreasing term life insurance is commonly taken out to protect a repayment mortgage. This is because the sum assured reduces over the policy lifetime, typically at the same rate as a mortgage. Therefore, if you pass away during the policy term, the amount paid out will be less
  • Some insurers offer increasing term life insurance. This helps to protect your pay out from inflation as the sum assured will typically increase in line with the Retail Prices Index (RPI). This means, if you pass away during the policy term, the amount paid out will be more. Increasing life insurance isn’t currently available through Reassured

What is the highest life insurance pay out?

Through Reassured it’s possible to take out cover with a pay out amount of up to £1,000,000, however this will be subject to your individual circumstances.

Although £1,000,000 is an extremely generous sum to leave your loved ones, it’s important to secure a policy with a cover amount which meets your needs.

Taking out excess cover means you could be paying much more for your premium than is necessary.

An expert member of our team can talk through your needs and provide you with all the information you need to make an informed decision.

We can also help you compare quotes to find our best deal on a policy that’s right for you.

Compare £100,000 life insurance quotes

At Reassured we can help you to compare quotes for £100,000 life insurance.

We work with a panel of the UK’s best insurers (and smaller specialists) to allow you to find the right policy to meet your needs at a price that’s within your budget.

We can also walk you through the application process and answer any questions you might have, while providing all the necessary information.

Simply get in touch today to get your free quotes from a friendly member of our team.

Sources:

[1] https://www.sunlife.co.uk/siteassets/documents/cost-of-dying/sunlife-cost-of-dying-report-2023.pdf/

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