What is the average life insurance cost per month?

The average cost of life insurance in the UK is currently £38.15, according to our extensive internal research here at Reassured; the UK’s largest life insurance broker * .

We calculated this average cost from 142,576 term life insurance policies, sold between 08/09/21 - 08/09/22, with an average sum assured (cover amount) of £151,972.

Was this the price you were expecting?

Reassured offer monthly premiums that cost as little as £5 a month † , but the price you pay can vary depending on:

  1. The policy you take out
  2. Your level of cover
  3. Your policy term
  4. Your personal circumstances

To secure the best cost life insurance it’s essential to compare quotes.

Why not do this using the FCA-regulated broker service offered by Reassured?

We work with some of the UK’s leading providers, as well as smaller specialists, to find you the most cost-effective life insurance.

Simply get in touch for your personalised, fee-free and no-obligation quotes.

How much life insurance do you need?

Work out how much life insurance you may need based on your current financial commitments and what you want your policy to cover. Simply fill in the fields which apply to you for an instant calculation.

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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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Average cost of life insurance breakdown

The average price you pay for life insurance can vary depending on a variety of factors.

The table below shows how the average cost of life insurance can differ:

Level termDecreasing termWhole of lifeOver 50s planMenWomenSmokerNon-smokerJoint policy
Average premium cost£38.23£38.07£178.30£29.65£44.85£31.30£40.34£38.53£46.23


This data has been taken from our internal sales data and is the average price of all policies broken down by each category, sold to our customers of all applicable ages, over a 12-month period. The sum assured will vary. Data correct as of 22/09/2022

What determines the cost of life insurance per month?

The cost of your life insurance, per month, is calculated using your personal circumstances and the details of your chosen policy.

These monthly payments are known as life insurance premiums.

The factors that influence the monthly cost of life insurance premiums include:

  • Age - As a general rule, the older you are, the more you pay for life insurance. This is based on the assumption that, as we get older, we become more susceptible to developing health problems
  • Health & wellbeing - You’ll need to disclose any medical conditions you currently have - including both physical and mental health conditions. Having a pre-existing condition could lead to your premiums being increased, depending on the type and severity of your condition
  • Medical history - You’ll also be asked about any medical conditions you’ve had in the past, as well as your family medical history. Depending on whether the condition could re-occur, you may experience an increase to your premiums
  • Weight/BMI - If your weight or BMI isn’t within a healthy range (for example if you’re severely overweight or obese), you’ll likely pay more for your premiums due to the increased risk of certain health complications
  • Smoking status - Smokers are often quoted higher for life insurance due to the increased risk of developing certain health problems, such as lung cancer or heart conditions
  • Lifestyle - Other details about your lifestyle could also result in higher premiums. For example, if you have a dangerous hobby, if you consume over 14 units of alcohol per week or if you frequently travel to high risk areas (such as those in the midst of war or disease outbreak)
  • Occupation - Those with occupations that could be considered high risk will pay more for their cover
  • Type of cover - The policy type you choose can impact the price you pay. Term life insurance tends to be the cheapest option, whereas whole of life or over 50 life insurances are usually more expensive
  • Length of cover (policy term) - A longer term length can result in more expensive premiums
  • Level of cover (sum assured) - The more you’d like to be paid out to your loved ones, the more you’ll pay for your premiums

These factors allow insurers to assess your level of risk (how likely it is for a claim to be made) and your monthly life insurance premium is calculated accordingly.

Compare quotes through Reassured to find the best policy for your personal circumstances.

What costs should you consider when taking out life insurance?

That sum assured you choose should be one that can take care of all essential costs for your loved ones after your passing.

This can allow them to maintain their current lifestyle and prevent them from making changes (such as moving from the family home) to their life at an already distressing time.

Important costs you may wish to consider include:

Mortgage

Mortgage debt - £146,427 is the average mortgage debt in the UK[1].

Cover rent cost

Rent - Average monthly cost of rent across the UK is £606[2].

Bills utilities

Household bills - The average annual gas bill in 2021 was £575, with the average annual electricity bill £764[3].

Childcare cost dummy

Childcare - Full-time childcare costs £285.31 per week, with part-time childcare costing £148.63[4].
Family living

Family living costs - The average cost of family spending is £588 per week[5].

Debts

Outstanding debt - £33,410 is the average personal debt in the UK[6].

Higher private education

Higher education costs - Parents could be expected to contribute up to £5,000 a year to university living costs[7].

Funeral

Funeral costs - In 2021, the average cost of just a basic funeral in the UK was £4,056[8].

As well as these costs, you may also wish to factor in an additional sum to leave as a cash gift for your loved ones in the form of an inheritance.

Speaking to an expert can help you establish what costs you need to cover, as well as allowing you to compare all your available options.

Why not contact Reassured to help you make a fully informed decision about the best life insurance to meet your needs?

What is the average cost of level term life insurance?

£38.23 is the average cost of level term life insurance, according to internal data from our award-winning brokerage.

Level term life insurance in a nutshell:

  • Provides cover for a specified period (up to 40 years)
  • Pay out will only be provided if you pass away during this time
  • Maximum sum assured £1,000,000
  • Pay out sum is fixed
  • Medical information is required during the application
  • Ideal for protecting an interest-based mortgage & family living costs
  • Low-cost premiums from just 20p-a-day through Reassured †

Level term life insurance provides cover for a specified period of time (the term) and will pay out a fixed sum if you pass away during this time.

The fixed lump sum can help to protect large expenses for your loved ones such as an interest-only mortgage, other large debts and family living costs.

Level term life insurance can be one of the cheapest options.

However, you’ll need to provide key information during the application (such as medical information) which could inflate the price you pay (depending on your personal circumstances).

The table below shows example costs of a level term life insurance policy. Quotes are based on a non-smoker, in good health, with a 20-year term and £100,000 of cover:

AgeLevel term cost per month
20£3.59
25£4.34
30£4.38
35£5.63
40£8.12
45£11.67
50£17.26


The price of level term life insurance can vary dramatically between providers and due to your unique circumstances.

For this reason, it’s essential to compare quotes to find the best deal.

Our FCA-regulated broker service can provide you with level term life insurance quotes from some of the UK’s leading providers to help you find the most affordable policy to meet your needs.

Simply contact a friendly member of the team today for your free level term quotes.

What is the average cost of decreasing term life insurance?

The average cost of decreasing term life insurance is £38.07, according to extensive research by our award-winning team.

Decreasing term life insurance in a nutshell:

  • Provides cover for a specified period (up to 40 years)
  • Pay out will only be provided if you pass away during this time
  • Maximum sum assured £1,000,000
  • Pay out sum reduces throughout the policy term
  • Medical information is required during the application
  • Ideal for protecting a repayment mortgage
  • Low-cost premiums from just 20p a day through Reassured ¥

Decreasing term life insurance is often the cheapest option as your risk to the insurer reduces each year as your sum assured decreases.

Your sum assured will often reduce at the same rate as a repayment mortgage, making it an ideal option to help cover this cost.

While this may be the average cost for decreasing term life insurance, the exact price you pay will vary from person to person.

This is because key information will be taken into consideration when calculating your premium.

The table below shows example costs for decreasing term life insurance and how it can be a cheaper option than level term life insurance.

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

AgeDecreasing term cost per monthLevel term cost per monthCost difference (%)
20£3.50£3.593%
25£3.50£4.3424%
30£3.85£4.3814%
35£4.50£5.6325%
40£5.39£8.1251%
45£7.61£11.6753%
50£11.20£17.2654%


Compare decreasing term life insurance through Reassured, starting from just 20p-a-day ¥ .

A friendly member of the team can also help you to compare level vs decreasing term to ensure you’re securing the best option to meet your needs.

What is the average cost of whole of life insurance?

The average cost of whole of life insurance is £178.30 (according to findings from our FCA-regulated broker service).

Whole of life insurance in a nutshell:

  • Provides lifelong cover
  • Pay out is guaranteed when you pass away
  • Maximum sum assured £1,000,000
  • Pay out sum is fixed
  • Medical information is required during the application
  • Ideal for providing an inheritance
  • Low-cost premiums from 27p-a-day through Reassured ±

This average cost may seem a lot more than the other products discussed in this article, but this is because whole of life insurance lasts for life and guarantees a pay out.

This can allow you to guarantee an inheritance for your loved ones, or they could use the funds to help cover the cost of your funeral.

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

AgeWhole of life cost per month
20£64.62
25£71.07
30£79.20
35£95.65
40£114.64
45£133.90
50£144.03


Although premiums are cheaper while you’re younger, if paying this amount over your whole lifetime, this could become costly.

For this reason, whole of life insurance can be better suited to those later in life who are still in good overall health.

While the premium price may be greater, it’s likely this will be paid over a shorter period than if you were to take out a policy earlier in life.

It will also allow you to take out a greater sum assured than with an over 50s plan, so you can provide a greater cash gift for your loved ones.

Whole of life insurance starts from just 27p-a-day ± through Reassured, simply get in touch for your free quotes.

What is the average cost of over 50 life insurance?

Our in-depth research shows that the average price of over 50 life insurance is £29.65.

Over 50 life insurance in a nutshell:

  • Guaranteed acceptance for UK residents aged 50 - 85
  • Provides lifelong cover
  • Pay out is guaranteed when you pass away
  • Maximum sum assured £20,000
  • No medical information is required
  • Ideal for helping to cover funeral costs and/or providing a small inheritance
  • Low-cost premiums from 20p-a-day through Reassured +

Over 50s plans can often have more expensive premiums as you’re not required to provide medical information.

Insurers tend to use higher premiums to mitigate the risk of providing cover. However, some providers will offer a maximum premium price (for example £75) which means you won’t be charged any higher than this.

Another caveat insurers use to mitigate the unknown medical risk is offering a lower sum assured (capped at £20,000). This could explain the cheaper average cost in comparison to the other policies mentioned in this article.

The table below shows example costs of over 50 life insurance. Quotes are based on a non-smoker for £10,000 of cover:

AgeOver 50 life insurance cost per month
50£32.30
55£37.07
60£41.91
65£50.58
70£67.01
75£75 (£7,669)
80£75 (£4,634)


It’s also important to note that your age will have an impact on the level of cover you can secure. As you can see from the table above, not all ages were able to secure a sum assured of £10,000.

At Reassured we can help you secure over 50s plans, from two of the UK’s leading providers, starting from just 20p a day + .

Get in touch for your personalised, fee-free and no-obligations quotes.

What is the average life insurance cost for a mortgage UK?

Buying a house and securing a mortgage is often a trigger to secure life insurance to protect your new home.

Most commonly, a decreasing term life insurance policy is taken out to help protect a repayment mortgage as your sum assured can reduce in line with your remaining mortgage balance.

At the end of 2021, average mortgage debt in the UK stood at £137,934 with the average house price at £231,855[1] and the average mortgage term being 25 years[9].

Research suggests that the average age of a first time buyer is now 32 years old - having risen from age 29 over the last decade[10].

The table below shows example life insurance costs to protect a mortgage, over a 25-year period, for £250,000 of cover. Quotes are based on a non-smoker in good health:

AgeMortgage life insurance cost per month
20£6.05
25£7.68
30£9.89
35£15.26
40£24.22
45£42.13
50£74.04


To determine the cost of life insurance to protect your own mortgage, it’s essential to get an individually tailored quote to match your mortgage balance and term.

Why not get in touch with the award-winning team at Reassured for your fee-free and no-obligation mortgage life insurance quotes?

What is the average cost of life insurance with critical illness cover?

The average price for life insurance with critical illness cover is £42.83, according to the internal data here at Reassured.

Life insurance with critical illness cover in a nutshell:

  • Additional level of cover in case of serious illness
  • Can be added to your life insurance policy for an additional cost
  • Can help you to replace lost income and/or pay for private medical treatment
  • Once a claim has been made your policy will expire (including life insurance)
  • Available with term life insurance policies
  • Low-cost premiums from 33p-a-day through Reassured º

Critical illness cover can be added to your life insurance policy for an additional fee.

It will allow you to make an early claim on your policy if you’re diagnosed with a life-changing illness.

The funds received can help you to replace lost income if you’re unable to work and/or pay for private medical treatment to help with your recovery.

Once a critical illness claim has been made, your policy will expire, and your loved ones won’t be able to make a claim upon your passing.

The table below shows example costs of life insurance with critical illness cover vs a standard life insurance policy. Quotes are based on a non-smoker, in good health, for a level term life insurance policy with a 20-year term and £100,000 of cover:

AgeCost of life insurance with critical illness coverCost of life insurance without critical illness cover
20£12.02£3.59
25£14.12£4.34
30£20.24£4.38
35£30.26£5.63
40£48.53£8.12
45£75.77£11.67
50£116.47£17.26


The cost of life insurance with critical illness cover is more expensive due to the additional level of cover provided.

It can be possible to secure critical illness cover separately to your life insurance policy through some providers, although this would require two premiums.

Compare life insurance with critical illness cover quotes through Reassured to find the most affordable deal.

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What is the average cost joint life insurance?

We discovered that the average cost of joint life insurance is £46.23.

Joint life insurance in a nutshell:

  • Covers two lives simultaneously
  • Only one pay out is provided
  • Ideal for couples who are on a budget
  • Available on term life insurance policies
  • Could save up to 35% (compared to two single policies)

Joint life insurance can be an ideal option for couples who have shared financial commitments (such as a mortgage or family living costs).

You may also need to have your own separate financial commitments (such as personal debt) covered under this policy - perhaps accounting for the higher average cost.

The policy will cover both lives, meaning only one premium is required between the two of you.

While this can help you to save money, only one pay out is provided. If you have a young family, this may not be sufficient to cover both parents.

It’s also important to note that if one partner is considered to be more high risk than the other, the premium you both pay will be influenced by this.

If it’s within your budget, it can be beneficial to take out two separate policies to provide two separate pay outs to ensure everything is covered for your loved ones.

The table below shows example costs of joint life insurance vs two single policies. Quotes are based on non-smokers, in good health, for a level term policy with a 20-year term and £100,000 of cover:

AgeCost of one joint policyCost of two single policiesCost difference (%)
20£5.30£7.1835%
25£6.34£8.6837%
30£7.70£8.7614%
35£10.38£11.268%
40£14.72£16.249%
45£21.55£23.348%
50£32.89£34.525%


Contact Reassured to conduct a full joint vs two single life insurance comparison to find the most cost-effective option.

What is the average life insurance cost for a smoker?

The average cost of life insurance for a smoker is £40.34, compared to a non-smoker which is £38.53.

Your smoking status is part of the standard information you’ll need to provide during the application process.

Due to the health conditions that smoking can cause, smoking can increase the price that you pay each month.

Even if you have quit and are using nicotine substitutes such as vapes and e-cigarettes, you’ll still be classed as a smoker in the eyes of insurers.

The table below shows example costs of life insurance for a smoker vs a non-smoker. Quotes are based on an applicant in good health for a level term life insurance policy with a 20 year term and £100,000 of cover:

AgeSmoker price per monthNon-smoker price per monthCost difference (%)
20£4.14£3.5913%
25£5.18£4.3416%
30£7.13£4.3839%
35£10.32£5.6345%
40£16.20£8.1250%
45£26.52£11.6756%
50£43.27£17.2660%


Quitting smoking can help you to save money on the cost of your life insurance.

However, you’ll need to have been free of nicotine for at least 12 months for most insurers to consider you a non-smoker.

Reassured have helped to secure affordable life insurance for over 100,000 UK smokers.

Simply get in touch with a friendly member of our team for your personalised quotes.

What is the average cost of life insurance for men vs women?

We found that the average cost for life insurance for women is £31.30 and £44.85 for men.

Gender isn’t a factor that insurers take into consideration when calculating your monthly life insurance premium, meaning men and women are charged the same standard rate.

What can cause the fluctuation in price between men and women is personal circumstances and the level of cover that’s required.

If we consider things such as:

  • The gender pay gap - In 2021, of all employees, median pay was 15.4% less for women than men[11]
  • Personal debt - Men have a higher average personal debt (£2,800 in 2021) compared to women (£1,800)[6]

Any of these factors, plus many more, could contribute to men securing a higher level of cover and, therefore, a higher average cost.

Average cost of life insurance in summary

It’s important to note that, even though our average costs show one figure, this may not be the price of your individual quotes.

The average premium displayed in the article is from a wide range of customers, from all walks of life.

This means it can be possible to secure a lower premium, depending on your personal circumstances.

At Reassured, we put you first and strive to find you the most affordable deal on life insurance that meets your needs.

We can provide you with personalised quotes, starting from just £5-a-month, free of charge and with no obligation to take out a policy.

Why not put us to work and let us help you find the right policy for you (at a price that’s within your budget).

Compare quotes to secure the best life insurance

Is the average life insurance cost in the UK what you thought it would be?

Remember, there are many factors that are considered when calculating the individual cost of your life insurance - meaning the cost of life insurance can vary significantly.

That’s why, it’s always important to compare multiple quotes to ensure you’re taking out the most cost-effective cover.

Reassured offer an award-winning broker service which can save you time and money by helping you to compare quotes from some of the UK’s leading providers.

Regardless of your age, health and chosen policy type, we can help to find you the policy that’s best for your unique circumstances.

Best of all, we can provide you with free quotes which start from as little as 20p-a-day.

Get in touch today to secure the financial future of your loved ones.

Compare Life Insurance Quotes with Reassured »

Sources:

^This information has been gathered from our internal sales data and is the average price of all term life insurance policies (both level and decreasing term) sold to our customers, of all applicable ages, over a 12-month period. The sum assured will vary. Data is correct as of 22/09/2022

[1] https://www.finder.com/uk/mortgage-statistics

[2] https://www.spareroom.co.uk/content/info-landlords/average-rent-uk/

[3] https://www.moneyhelper.org.uk/en/blog/utilities/what-is-the-average-cost-of-utility-bills-per-month

[4] https://www.daynurseries.co.uk/_cb.cfm//advice/childcare-costs-how-much-do-you-pay-in-the-uk

[5] https://www.nimblefins.co.uk/average-uk-household-budget

[6] https://moneynerd.co.uk/average-personal-debt-uk-2022/

[7] https://www.savethestudent.org/money/asking-parents-for-money-university.html

[8] https://www.sunlife.co.uk/funeral-costs/

[9] https://www.onlinemortgageadvisor.co.uk/mortgage-application/maximum-mortgage-term/

[10] https://www.theguardian.com/money/2022/jan/22/average-uk-first-time-buyer-is-now-older-than-30-says-halifax

[11] https://commonslibrary.parliament.uk/research-briefings/sn07068/

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