Compare Quotes Average life insurance cost UK Premium costs vary, but why? Rated 'Excellent' with 58,634 customer reviews Homepage Life insurance Average life insurance cost UK 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. Remaining mortgage debt? ? £ Childcare, school or higher education costs? ? £ Loans, credit cards & any other debts? ? £ Additional lump sum gift? ? £ Funeral costs? ? £ Existing life insurance, death in service & savings? ? £ - Your total cover estimate £ 0 Let us find your best quote. Compare Quotes » 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 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. The average cost of life insurance varies between £30.40 and £13.24 depending on source 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: Age Monthly 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 30-year term: Age Level term life insurance Decreasing term life insurance 20 £4.55 £4.71 25 £5.28 £4.99 30 £5.84 £5.18 35 £7.92 £6.08 40 £11.42 £7.97 45 £17.37 £10.89 50 £28.82 £17.11 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 30-year term: Age Two single policies A joint policy 20 £9.10 £7.34 25 £10.56 £8.20 30 £11.68 £10.27 35 £15.84 £15.10 40 £22.84 £21.49 45 £34.74 £33.31 50 £57.64 £55.58 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 30-year term: Age Smoker per month Non-smoker per month 20 £5.87 £4.55 25 £7.26 £5.28 30 £9.83 £5.84 35 £14.60 £7.92 40 £22.75 £11.42 45 £36.78 £17.37 50 £60.16 £28.82 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. Secure life insurance from as little as 20p a day 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: Age Whole 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/ Related articles: 9 Reasons to use a life insurance broker 7 min What's most important to you when it comes to arranging… Read now Is life insurance taxable? 5 min Ever wondered whether your life insurance proceeds are… Read now Benefits of life insurance 6 min Ever wondered what the benefits of life insurance actually… Read now Term life insurance vs whole of life insurance 7 min Compare term-based life insurance and whole of life… Read now Family life insurance 10 min Family life insurance can secure the financial future of… Read now Life insurance with pre-existing conditions 10 min Did you know that it's still possible to secure affordable… Read now Can you have more than one life insurance policy? 8 min Have you ever asked 'Can you have more than one life… Read now Life insurance with a free gift 12 min Many life insurance policies now come with a free welcome… Read now Life insurance for parents 9 min Have you ever wondered what would happen to your family's… Read now How does life insurance work in UK? 11 min Securing life insurance doesn’t have to be confusing. Read… Read now Do I need life insurance for a mortgage? 7 min What cover protection do you need to secure when taking out… Read now How much life insurance do I need? 10 min So, you know you need life insurance to protect your loved… Read now We’re rated as 'Excellent' with 58,634 customer reviews Very easy to understand and very quick Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good! Mrs M Rushworth Articles Careers Press releases Insurer reviews Privacy Policy Terms and Conditions Gender Pay Statement About Contact us Modern Slavery Act *£10 month Life Insurance quoted rates are based on level term life cover for non-smokers and are subject to individual status and medical underwriting. Correct as of 1st July 2021. £287,852 over 20 years - 30 year old born in 1991 (AIG) £211,219 over 20 years - 35 years old born in 1986 (AIG) £160,636 over 15 years - 40 year old born in 1981 (AIG) £95,191 over 15 years - 45 year old born in 1976 (AIG) £70,654 over 10 years - 50 year old born in 1971 (AIG) £43,898 over 10 years - 55 year old born in 1966 (AIG) £21,261 over 10 years - 60 year old born in 1961 (AIG) £11,239 over 10 years - 65 year old born in 1956 (LV=) £7,141 over 10 years – 70 year old born in 1951 (LV=) *£5 month Life Insurance quoted rates are based on level term life cover for non-smokers and are subject to individual status and medical underwriting. Correct as of 1st July 2021. £90,779 over 20 years - 30 year old born in 1991 (L&G) £60,151 over 20 years - 35 years old born in 1986 (AIG) £39,538 over 15 years - 40 year old born in 1981 (AIG) £26,649 over 15 years - 45 year old born in 1976 (L&G) £16,274 over 10 years - 50 year old born in 1971 (AIG) £9,544 over 10 years - 55 year old born in 1966 (L&G) £6,580 over 10 years - 60 year old born in 1961 (L&G) £3,830 over 10 years - 65 year old born in 1956 (L&G) £2,056 over 10 years - 70 year old born in 1951 (L&G) © Copyright 2021 Reassured. All Rights Reserved. Reassured Ltd is authorised and regulated by the Financial Conduct Authority (616144). Registered office: 1st Floor, Belvedere House, Basing View, Basingstoke, Hampshire, RG21 4HG. 06838409 registered in England and Wales. By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyse site usage, and assist in our marketing efforts. Preferences Accept