What is the average life insurance cost per month?

The average cost of life insurance in the UK varies from £30.40[1] to £13.24[2] depending on which research you refer to.

Whilst the average cost of life insurance may be considerably higher than you were hoping to pay, the price varies significantly between applicants.

At Reassured, we can arrange life insurance cover from as little as 20p-a-day † .

The amount you pay per month for your life insurance protection depends on your individual circumstances.

Keep reading to find out more about the average costs of various types of life insurance and the aspects which may affect these costs…

Alternatively, get in touch today for your free, no-obligation quotes.

How much life insurance do you need?

Enter your financial commitments to understand the level of cover you require.

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£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.
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According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.
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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.
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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.
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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.
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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.
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Your total cover estimate

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What determines the cost of life insurance per month?

As mentioned, the monthly cost of your life insurance will be dependent on a number of individual factors.

These include:

  • Age
  • Health & wellbeing
  • Medical history
  • Smoking status
  • Type of cover
  • Length of cover
  • Level of cover, (sum assured)

These aspects will be used by the life insurance provider to determine the level of risk you pose and the likelihood of a claim.

Those presenting a higher risk will be charged more on a monthly basis.

To ensure you receive the best deal, it's always favourable to compare quotes from multiple providers.

Average life insurance cost for mortgage UK

When arranging cover for your mortgage, the most common form of life insurance obtained is decreasing term life insurance.

This type of protection provides a sum assured which declines throughout the term of your policy in line with the remaining amount of a repayment mortgage so that if a claim is made, the outstanding balance of the mortgage will be covered.

However, the cost of properties across the UK varies significantly depending on location. As a result, the amount of cover required will vary also.

The larger the sum of protection you require, generally, the higher the cost of your life insurance premiums.

In 2020, the average mortgage debt in the UK is £130,000[3] but is likely to be much larger in certain areas of the country.

The UK's least affordable location to buy a home is Winchester, in southern England. Here, the average property costs a staggering 14 times the average salary[4].

Therefore, it's easy to see that the average cost of life insurance to cover a mortgage within this county is likely to be above the national average.

The length of your mortgage and your age will also impact the cost of your premiums, with those requiring a longer-term, or taking out cover at an older age, being charged higher premiums.

The table below shows example pricing for a decreasing term life insurance policy to protect a mortgage over a 30-year term for £250,000 of cover, for a non-smoker who is in good health:

AgeMonthly cost for mortgage life insurance
20£6.42
25£6.88
30£8.13
35£10.69
40£15.17
45£22.31
50£36.27

To determine the cost of life insurance to protect your own mortgage, it's essential to get an individually tailored quote.

Average life insurance cost - level vs decreasing

Overall, decreasing term life insurance is considered to be the cheapest form of life insurance as the pay out sum reduces throughout the course of the policy.

The table below shows an example price comparison between a level term vs decreasing term life insurance policy.

Quotes are based on a non-smoker in good health for £100,000 of cover over a 20-year term:

AgeDecreasing term life insuranceLevel term life insurance% Difference
20£4.36£3.61+21%
25£4.92£4.73+4%
30£4.99£4.82+4%
35£5.09£6.00-15%
40£6.05£7.87-23%
45£8.10£11.07-27%
50£10.99£16.18-32%


Whilst the figures show that decreasing term life insurance is cheaper regardless of age, the percentage savings between the two increases with age.

30-year-old applicants can save an average of 11.3% if they were to take out a decreasing term policy as opposed to a level term policy, whilst a 50-year-old applicant could save a huge 40.6% saving a month.

This equates to an average saving of £4,215 for a 50-year-old applicant over the course of the policy term.

At Reassured, we can arrange both level term and decreasing term policies.

Simply contact our team today for your free quotes to determine the right solution for you.

Average cost of joint life insurance

Generally speaking, it's 25% cheaper to arrange joint life insurance policy as opposed to two singles.

However, it will only ever result in one pay out instead of two.

Therefore, when determining whether or not to opt for joint cover, you should consider the saving to be made on a monthly basis, compared to the shortfall of only one sum assured being received by your loved ones if the worst were to happen.

The table below shows an example price comparison between two single policies vs one joint policy.

The quotes are based on a level term policy for non-smokers in good health for £100,000 of cover over a 20-year term:

AgeJoint policyTwo policies% Difference
20£6.25£7.22-13%
25£7.13£9.46-25%
30£8.79£9.64-9%
35£10.58£12.00-12%
40£14.30£15.74-9%
45£21.08£22.14-5%
50£31.53£32.36-3%


As displayed by the table above, it’s possible to save by securing a joint policy. On average 30-year-olds can save 12.1% on a joint policy, whereas 50-year-olds can save 3.6%

As with all life insurance policies, the amount you can save will depend on individual factors, and if one party suffers particularly ill-health, this could skew the overall premium cost.

Contact Reassured today to compare both individual and joint premium costs to determine the most cost-effective solution for you.

Average life insurance cost for a smoker

Due to the additional health implications, the cost of life insurance for a smoker is significantly higher in comparison to a non-smoker - Up to 50% for a 50-year-old smoker[5].

Across the UK, smokers will pay on average 56% more in comparison to non-smokers for standard life insurance. This makes the average cost of life insurance for a smoker £14.19 a month, verse £7.99 for a non-smoker[6].

As stated, your smoking status is only one factor which will be taken into account when arranging your life insurance, and your insurer is likely to require further information about your habit, such as amount per day and length of time you have been smoking.

This information will then be processed to determine the impact it may have on your health and the affect it will have on the likelihood of a claim being made.

The table below shows an example price comparison between a smoker and a non-smoker, who are in good health.

Quotes are based on a level term policy for £100,000 of cover over a 20-year term:

AgeSmokerNon-smoker% Difference
20£4.02£3.61+11%
25£5.45£4.73+15%
30£6.76£4.82+40%
35£9.69£6.00+61%
40£15.52£7.87+97%
45£24.71£11.07+123%
50£39.57£16.18+145%

At Reassured, we can arrange life insurance for smokers at an affordable price, so get in touch and challenge us to find you a great deal.

Average cost of whole of life insurance

Whole of life insurance lasts for the rest of your life and guarantees a pay out.

It's this guaranteed pay out that makes it not surprising that this form of protection tends to be one of the most expensive.

As with other forms of life insurance, various aspects such as your age, health and cover requirements will affect the cost of your premiums.

The table below shows example costs for whole of life insurance. Quotes are based on a non-smoker in good health for £100,000 of cover:

AgeWhole of life cover
30£72.10
35£84.56
40£103.03
45£126.75

50

£150.17

At Reassured, we can compare term and whole of life insurance quotes to secure you the most appropriate deal.

Secure the best available deal » Compare quotes

Regardless of your age, health or the type of life insurance you're looking to secure, comparing quotes from multiple insurers can ensure you the best deal.

Reassured is an FCA-regulated broker service. Our award-winning team can provide you with all of the information you need to make a fully informed decision.

Get in touch today and discover the best policy option for you - for free.

Compare Life Insurance Quotes »

Sources:

[1] https://bobatoo.co.uk/blog/how-much-does-life-insurance-cost-the-average-cost-of-life-insurance-in-the-uk/

[2] https://www.moneysupermarket.com/life-insurance/

[3] https://www.thisismoney.co.uk/money/mortgageshome/article-7494625/Mortgage-holders-coming-end-two-year-fix-payments-double.html

[4] https://www.independent.co.uk/news/uk/home-news/uk-most-least-affordable-cities-b1900245.html

[5] https://moneytothemasses.com/quick-savings/insurance-2/life-insurance/much-100000-life-insurance-cost

[6] https://www.moneysupermarket.com/life-insurance/stop-smoking/

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