Family life insurance UK

While it’s hard to think about not being around for your family, it’s important to plan for the future and ensure they’re financially protected should the worst happen to you.

If you were to pass away unexpectedly, could your family afford to:

  • Repay the mortgage or make rent payments?
  • Cover household bills & family living costs?
  • Pay for additional childcare?
  • Clear outstanding debts?
  • Cover the cost of your funeral?

A life insurance pay out can be used by your loved ones to help cover essential financial commitments and other key costs.

Not only that, but you can live with peace of mind knowing that your loved ones would be taken care of financially, should the unexpected happen.

Compare family life insurance quotes through Reassured, the UK’s largest life insurance broker * , for our best available deals.

A friendly member of our team can help you to choose the right policy and compare suitable quotes from top UK insurers.

Quotes are fee-free and start from just 20p-a-day, why not get in touch?

What is family life insurance?

Life insurance is a policy that can pay out a lump sum to your loved ones if you pass away during the term.

Often referred to as ‘family life insurance’ as the funds are typically left to your family to help them cover essential living costs.

There are various policy types available to meet differing needs.

Some policies provide cover for a specified period while others offer lifelong cover. The one that’s right for you will depend on the specific needs of you and your family.

Watch our short video explaining what life insurance, is and why most UK families would benefit from having it:

Comparing family life insurance quotes can allow you to find the right policy for your personal circumstances at a great price.

Reassured can help you compare family life insurance quotes from leading UK insurers, free of charge.

We’ve helped over 2,000,000 UK families find affordable cover.

Why is family life insurance important?

Arranging family life insurance is vital to help provide financial stability for your loved ones should the worst happen to you.

It’s a sad fact that a child loses a parent every 22 minutes in the UK[1]. This highlights the importance of securing the right financial protection for your loved ones.

A life insurance policy can give you peace of mind that your family could continue their current lifestyle without needing to make drastic cutbacks.

How does family life insurance work?

Life insurance involves making monthly payments (known as premiums) to an insurer who will then pay out a cash lump sum to your family if you pass away during the policy term.

This is how family life insurance usually works:

Choice Of Options

Choose a policy - Decide which type of life insurance you need, how long you want to be covered for and the cover amount.

Paperwork Application

Apply - When applying, you’ll need to answer some eligibility questions, as well as questions about your health and lifestyle to receive an accurate premium quote.

Cost Money Quotes

Pay your premiums - Once your cover is in place, you’ll need to keep up to date with your monthly premium payments in order to keep your policy valid.

Friendly Helpful

Make a claim - If you pass away while your policy is active, your loved ones can make a claim and receive a cash lump sum payment.

Family Protection

Pay out - Once your loved ones have received their pay out, they can use the funds to help cover essential family living costs.

How much life insurance do I need for my family?

How much life insurance you need will depend on which costs you’d like to help cover for your family if you were no longer around.

To calculate your ideal cover amount, you may consider your current financial commitments, such as the mortgage and family living costs, as well as things like your funeral costs and an inheritance for loved ones.

Here are some UK money statistics to help you decide how much family life insurance you may require:

  • £157,562 is the average cost of raising a child to 18 years[2]
  • £129,130 is the average mortgage debt[3]
  • £11,675 is the average cost of rent per year[4]
  • £34,566 is the average adult’s debt (not including mortgages)[5]
  • £27,849 is the average amount UK families spend each year on living costs[4]
  • 34% of adults have no savings, or less than £1000, in a savings account[6]
  • £285.31 is the average cost of full-time childcare per week[7]

How much family life insurance do you need?

Fill in your financial commitments and other costs you’d like your policy to cover to calculate the level of family life insurance cover you need.

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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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What is the best life insurance for a family?

There are a variety of life insurance policies, with each type being well suited to protecting different aspects of your life.

The policy that’s best for you and your family will depend on what you want to protect.

Life insurance can be split into two categories; term-based cover and life assurance (cover which lasts for life).

Most commonly, term-based life insurance is secured to protect a family as you can have the policy term align with important milestones, such as when the mortgage will be paid off or once your children reach financial independence.

The term-based options we offer at Reassured include:

Level term family life insurance

Level term life insurance

Level term life insurance provides cover for a specified period (the term) with a fixed sum assured (cover amount). This means the pay out value won’t change over time.

  • Policy term from up to 40 years
  • Sum assured up to £1,000,000
  • Pays out if you pass away during the policy term
  • Can help to protect a mortgage and/or family living costs
  • Terminal illness cover included at no extra cost
Decreasing term family life insurance

Decreasing term life insurance

Decreasing term life insurance provides cover for a specified period, with the sum assured reducing throughout the policy term.

  • Policy term from up to 40 years
  • Sum assured up to £1,000,000
  • Pays out if you pass away during the policy term
  • Ideal for helping to protect a repayment mortgage
  • Terminal illness cover included at no extra cost
Family income benefit for families

Family income benefit

Family income benefit is an alternative form of life insurance designed to pay out to your loved ones in monthly instalments (rather than a lump sum) to help protect family living costs.

  • Policy term up to 40 years
  • Could pay out up to £5,000 per month (depending on the insurer)
  • Pays out if you pass away during the policy term
  • Loved ones will receive payments for the reminder of the policy term
  • Terminal illness cover included at no extra cost
  • Premiums start from 20p-a-day through Reassured ¤
Family life insurance with critical illness

Life insurance with critical illness cover

Critical illness cover can be added to term life insurance for an additional cost. This will allow you to make an early claim on your policy if you’re diagnosed with a serious illness.

  • Added to life insurance for an additional cost
  • Pays out a lump sum if you’re diagnosed with a serious illness
  • Typically, up to 30 illnesses are covered including heart attack, stroke and cancer
  • Can help to replace lost income or fund private medical care
  • Premiums start from 33p-a-day through Reassured º

However, if your budget allows and you’d like to guarantee loved ones a pay out (perhaps to provide them with an inheritance or to help them cover the cost of your funeral), then you may consider life assurance.

The life assurance options available through Reassured include:

Whole of life insurance for families

Whole of life insurance

Whole of life insurance offers lifelong cover, guaranteeing a pay out to your loved ones when you pass away.

  • Provides cover for the rest of your life
  • Sum assured up to £1,000,000
  • A pay out is guaranteed when you pass away
  • Premiums must be paid for the rest of your life to keep cover valid
  • Could help to cover funeral costs or provide loved ones with an inheritance
  • Premiums start from 20p-a-day through Reassured ±
Over 50 family life insurance

Over 50s plan

Over 50 life insurance guarantees acceptance to those aged 50 – 85, with no medical questions asked.

  • Provides cover for the rest of your life
  • Sum assured up to £20,000 (depending on your personal circumstances and budget)
  • A pay out is guaranteed when you pass away
  • Most commonly used to help loved ones cover funeral expenses
  • Available from 20p-a-day through Reassured +

How much does family life insurance cost?

Family life insurance can be secured through Reassured from as little as 20p-a-day.

Life insurance premiums are calculated based on risk to the insurer. Therefore, the exact price you pay will be assessed using your personal circumstances (this is known as the underwriting process).

During the application you’ll be required to provide the following information:

The underwriting process will determine the level of risk you pose and your premiums will be calculated accordingly.

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

Age Legal & General AIG logo Aviva
20£4.99£3.64£3.50
25£4.99£4.46£3.50
30£4.99£5.08£4.23
35£6.32£6.47£5.67
40£8.77£8.52£7.97
45£13.28£12.19£11.43
50£21.13£18.17£18.34


As you can see from the table above, the price you pay for cover can vary between insurers - highlighting the importance of comparing multiple quotes.

When comparing quotes through Reassured we can provide you with our most cost-effective deals from some of the UK’s biggest insurers.

Our main aim is to find you affordable family life insurance, so why not get in touch?

Can I have multiple family life insurance policies?

Yes, it’s possible to have more than one life insurance policy in place to protect your family.

As each policy type is well suited to protecting different aspects of your life, you may choose to secure multiple policies simultaneously.

For example, a decreasing term policy to protect a repayment mortgage alongside a level term life insurance policy to protect family living costs.

An expert member of our team can provide you with all the information you need to make a fully informed decision on what’s best to protect your loved ones.

Can I buy family life insurance online?

Yes, it’s now possible to buy family life insurance online.

If you know what costs you’d like to cover for your family and which policy is required, then you can quickly and easily secure a policy online.

Buying family life insurance online allows you to:

  1. Complete the application questionnaire in your own time
  2. Browse through multiple term life insurance quotes from leading UK insurers
  3. Protect your family in a matter of minutes

To find out how to buy life insurance online, check out our in-depth guide for more information »

Can I write my family life insurance in trust?

Yes, it’s possible to write family life insurance in trust.

Writing your life insurance policy in trust allows you to transfer ownership of your policy to a trustee (similar to an executor of a Will) who will manage the pay out when you pass away.

Doing this has multiple benefits for your loved ones, including:

  • Avoid/minimise 40% inheritance tax by detaching the value of your policy from your estate
  • Receive a faster pay out by bypassing the probate process
  • Have more control over how and when the proceeds are distributed

Reassured offer a FREE trust writing service with the majority of the policies we arrange.

Simply contact our customer service team today for more information.

Compare family life insurance quotes

To ensure you secure a great deal on your family life insurance, it’s essential to compare quotes.

Our award-winning brokerage can help you compare quotes from some of the UK’s best life insurance providers.

We can also provide all the information you need to make an informed decision on what’s right for you and your family.

Quotes are fee-free and start from just 20p-a-day.

We’ve arranged life insurance for millions of UK families, so why not get in touch to take the first steps in protecting your loved one’s future.

Family life insurance FAQS

How can I make sure my family is protected?

You can protect your family by taking out the right financial protection.

Hopefully this article has helped to outline which life insurance options are available and given you an idea of what might be suitable for your needs.

One other type of financial protection you may consider for you and your family is income protection insurance (available through Reassured).

This can help to cover vital financial commitments if you couldn’t earn an income due to sickness or injury.

By using an FCA-regulated life insurance broker, such as Reassured, you could save time and money by comparing a variety of quotes at once.

Can I get life insurance for my children?

No, it’s not possible to get a standalone life insurance policy for each of your children.

However, it is possible to get children’s critical illness cover as part of your own critical illness policy.

Most insurers offer this extra benefit free of charge, while some may charge an additional fee on top of your normal premium.

Critical illness cover for your children will provide a cash pay out if they became seriously ill during the policy term.

The funds can be used to help cover private medical bills and loss of income if you need to take time off work to take care of them.

At Reassured, we don’t provide child life insurance policies, but we can offer standard life insurance policies combined with critical illness cover (at an additional cost) with free children’s cover.

What can a life insurance pay out be used for?

A life insurance pay out can be used to cover whatever your loved ones need after your passing.

Most commonly, a life insurance pay out is used to cover rent/mortgage payments, daily living costs and the cost of your funeral.

It’s also possible for the pay out the be left as a cash gift in the form of an inheritance or a charity donation.

Should I consider a joint life insurance policy?

Arranging joint life insurance could help you and your partner save money (on average up to 25% compared to two single policies).

A joint life insurance policy covers two lives simultaneously under one policy.

This means there’s only one application to fill out and one premium to pay. However, this also means there’s only one pay out (usually after the first death).

Once the policy has paid out, cover will expire and the surviving partner will need to secure new cover (potentially at an older age with more expensive premiums).

Securing two single policies may be a little more expensive but it means you’ll provide two separate pay outs if the worst happened.

What is the average life insurance cost per month?

The average cost of life insurance in the UK is currently £38.15 per month^, according to our internal research.

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

However, the cost of your life insurance could be much less than this. The actual cost of your policy will depend on your personal circumstances such as age, health and smoking status.

The below shows the average cost of life insurance for the most common policy types:

  • Level term life insurance - £38.23
  • Decreasing term life insurance - £38.07
  • Whole of life insurance - £178.30
  • Over 50 life insurance - £29.65

What happens if I outlive my life insurance?

If you outlive the term of your life insurance policy, your cover will expire and no pay out will be made.

If you find yourself in this situation, you may wish to seek out new cover to meet your new circumstances.

Do I need a family to secure life insurance?

No, while life insurance is often secured to protect a family, you don’t need a family in order to obtain cover.

Life insurance could also be beneficial for:

  • Helping to protect your partner
  • Helping to protect a mortgage secured with a friend
  • Donating a lump sum to a charity after your passing

Sources:

[1] http://www.childhoodbereavementnetwork.org.uk/research/key-statistics.aspx

[2] https://cpag.org.uk/sites/default/files/files/policypost/Cost_of_a_child_2022.pdf

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

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

[5] https://www.finder.com/uk/debt-statistics

[6] https://www.money.co.uk/savings-accounts/savings-statistics

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

^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

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