What's the average cost of life insurance in the UK?
The average cost of life insurance in the UK during 2024 was £32.64 per month, based on 121,561 policies. Discover what affects your premiums and compare quotes from £5 per month from leading UK providers.
Understanding average costs helps you budget and ensures you're not overpaying. Below we break down costs by policy type, age, and personal circumstances.
Compare Life Insurance Quotes »The average cost of life insurance in the UK during 2024 was £32.64 per month, based on 121,561 term life insurance policies sold by the UK's largest broker.
This figure represents a decrease from £34.43 per month in 2023, calculated from policies sold between 01/01/24 - 31/12/24, with an average cover amount (sum assured) of £160,871.36.
**What affects your life insurance cost:**
LifePro offers monthly premiums from as little as 20p-a-day, but the price you pay will vary depending on your personal circumstances and coverage needs.
**Average costs by policy type, gender, and smoking status (2024):**
**Key insights:**
To secure the best cost life insurance, it's essential to compare quotes from multiple providers. Use LifePro's FCA-regulated broker service to compare 50+ UK insurers and find the most cost-effective option for your needs.
£35.52 is the average cost of level term life insurance in 2024, based on 107,106 policies with an average sum assured of £133,144.14 and average age of 48.
Level term life insurance provides cover for a specified period (the term) and pays out a fixed sum if you pass away during this time. This lump sum can help protect large expenses for your family such as an interest-only mortgage, other debts, and family living costs.
**Level term key features:**
**Level term life insurance costs by age:**
*Quotes based on a non-smoker in good health, with a 20-year term and £150,000 of cover.*
The price of level term life insurance can vary dramatically between providers and due to your unique circumstances. Always compare quotes from multiple insurers to discover the best deal.
The average cost of decreasing term life insurance is £29.75, based on 14,455 policies with an average sum assured of £188,598.58 and average age of 47.
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 typically reduces at the same rate as a repayment mortgage, making it an ideal option to protect this cost.
**Decreasing term key features:**
**Decreasing term life insurance costs by age:**
*Quotes based on a non-smoker in good health, with a 20-year term and £150,000 of cover.*
Decreasing term is ideal if you only need to cover a repayment mortgage. If you also need to protect family living costs or other expenses, consider level term instead.
The average cost of whole of life insurance is £59.93, based on 1,020 policies sold in 2024 with an average sum assured of £22,307.63.
This average cost is significantly higher than term policies because whole of life insurance provides lifelong cover and guarantees a payout when (not if) you pass away. These funds can help your family pay inheritance tax bills or provide an inheritance to spend as they wish.
**Whole of life key features:**
**Whole of life insurance costs by age:**
*Quotes based on a non-smoker in good health for £50,000 of cover.*
Whole of life insurance is significantly more expensive than term policies because it's guaranteed to pay out. Consider whether you genuinely need lifetime cover or if term insurance would be more cost-effective.
The average price of over 50s life insurance is £27.62, based on 50,731 policies sold in 2024 with an average sum assured of £4,530.41.
Over 50s life insurance (or an over 50s plan) guarantees acceptance to those aged 50-85, without the need to provide any medical information. This means the price you pay is based solely on your age, cover amount, and sometimes your smoking status.
**Over 50s life insurance key features:**
**Over 50s life insurance costs by age:**
*Quotes based on a non-smoker for £5,000 of cover. *SunLife at age 85 has max £3,703 cover.*
Over 50s life insurance is more expensive per £1,000 of cover due to guaranteed acceptance with no medical questions. If you're healthy, standard life insurance may be significantly cheaper.
The average cost of life insurance in the UK in 2024 was £32.64 per month, based on 121,561 term life insurance policies sold by the UK's largest broker. This represents a decrease from £34.43 in 2023. Your personal cost will vary based on factors like age, health, smoking status, policy type, cover amount, and term length. To get an accurate price for your circumstances, compare personalised quotes from multiple providers.
Decreasing term life insurance is typically the cheapest option at an average of £29.75 per month in 2024, as the cover amount reduces over time (ideal for repayment mortgages). Level term averages £35.52 per month (fixed payout throughout). Over 50s life insurance averages £27.62 per month but offers lower maximum cover (up to £20,000). Whole of life is the most expensive at £59.93 average as it covers you for life and guarantees a payout.
Smokers pay significantly more for life insurance. For example, a 40-year-old smoker might pay £22.53 per month compared to £11.00 for a non-smoker - that's 51% more expensive. The cost difference increases with age: at 50, smokers pay £66.24 vs £26.80 for non-smokers (59% more). On average, smokers pay £35.65 per month vs £34.76 for non-smokers across all ages and policy types in 2024.
Yes, joint life insurance can save 15-38% compared to two single policies. For example, at age 45, a joint policy costs £20.08 vs £32.50 for two single policies (38% saving). At age 20, the saving is smaller at 15%. However, joint policies only pay out once (when the first person dies), which may not be sufficient for families with children. The average cost of joint life insurance in 2024 was £44.03 per month.
For a £285,000 mortgage over 25 years using decreasing term life insurance, costs range from £5.57 per month at age 20 to £37.04 per month at age 50 (for non-smokers in good health). The average cost of mortgage life insurance (decreasing term) in 2024 was £29.75 per month based on 14,455 policies. Your actual cost depends on your mortgage amount, term length, age, health, and smoking status.
Whole of life insurance costs decreased 30% from £85.61 in 2023 to £59.93 in 2024. This significant drop is likely due to: increased competition among providers, improved underwriting technology reducing insurer risk, and changes in investment returns affecting policy pricing. However, whole of life remains the most expensive policy type as it guarantees a payout and provides lifetime cover, unlike term policies which may never pay out.
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