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Average Cost of Life Insurance

Let’s take a look at average life insurance prices for medical conditions in 2024 and how you can estimate the cover amount you require.

What is the average cost of life insurance in the UK?

Let’s take a look at average life insurance prices for medical conditions in 2024 and how you can estimate the cover amount you require.

In This Guide, you’ll find.

Compare life insurance costs

Life Insurance costs for medical conditions

Calculate how much you need

What affects life insurance costs

Tips to reduce monthly premiums

Ask the expert

Every single application will be different, so estimating the cost can be tricky.

In this guide, we will compare life insurance costs, how to calculate the amount of cover needed, what affects the cost of life cover and tips for reducing your monthly premiums.

Comparing life insurance costs in the UK.

When you’re thinking about life insurance costs, it’s important to know that almost all claims, 98% {1} get paid. Plus, giving accurate info is key to keeping your policy valid.

So, it’s not just about finding the cheapest option. What’s the point of a cheap policy if it doesn’t help when your loved ones really need it?

Sure, life insurance can be cheap, even just a few pennies a day. But the big thing to check is if it’ll actually pay out when you’re not around to support your loved ones.

Let’s look at comparing life insurance prices, with and without medical conditions.

The average price of life insurance in the UK.

As per Aviva {2} & Vitality {3}, two of our valued partners, life insurance in the UK can be as affordable as £5 per month for a healthy, young individual.

Our data indicates that the average life insurance cost varies based on the individual’s medical condition. Below, we’ve outlined some example costings for clarity.

The average cost of life insurance with a medical condition.

Cancer Life Insurance, Average Premium = £38.59

For more information, on cancer life insurance click ‘read more’.

Read More >

Alcohol Dependency Life Insurance, Average premium = £29.79

For more information, on alcohol advice life insurance click ‘read more’.

Read More >

High BMI Life Insurance, Average Premium = £36.01

For more information, on high BMI life insurance click ‘read more’.

Read More >

Mental Health Life Insurance, Average Premium = £27.53

For more information, on mental health life insurance click ‘read more’.

Read More >

Dependants, like school-age children.

A partner who relies on your income.

A family living in a mortgaged or rented home.

How to calculate the amount of cover you need.

If you’ve ever compared life insurance prices online, you probably already know that costs can vary substantially between providers. You may have simply been declined life insurance – due to a medical condition or dangerous occupation. It’s easy to become confused by all the choices and variables. That’s why choosing a specialist insurance broker, with a lot of years of experience can give you appropriate options and suitable monthly premiums.

For a clearer idea of the amount of life insurance, you will need to protect your loved one financially. You can use The Insurance Surgery’s dedicated life insurance calculator. Just answer a few questions about yourself, and we’ll tell you how much cover we recommend for your circumstance.

What affects life insurance average costs?

Smoking

Smokers can get to a range of health issues. If you’re a smoker, you should expect to pay double that of a non-smoker.

Alcohol

The amount you drink can impact premiums. However, if you stick to the UK’s guidelines, your premiums shouldn’t be affected.

Gender

Because women, on average, live around five years longer than men, they can usually find lower rates than men with similar profiles.

Lifestyle

If you enjoy extreme sports like skydiving or driving fast cars, these will raise premiums due to the increased risk of death.

BMI

BMI is taken to understand the likelihood of weight-related conditions such as diabetes and sleep apnoea.

Age

Typically, the older you get, the higher the likelihood of illness. Getting life insurance younger tends to be more cost-effective.

Family History

If a family member had significant health issues, this may add a loading to premiums due to the increased risk of diagnosis.

Health

If you have a life-limiting health condition, you may pay higher-than-average life insurance premiums.

Why is life cover important?

When comparing average life insurance costs in the UK, you should always prioritise the level of cover you require and how long you want the policy to be valid for.

Check out our tips for reducing your monthly premiums below and our partner video from Vitality on why life insurance is so important.

In this video, Hayley was just 36 when diagnosed with a blood clot and cancer – her whole life turned upside down. However, thanks to her serious illness cover Hayley was able to take time off work to recover and be with her family.

Do You Need Life Insurance?

If you’re the primary breadwinner or share financial responsibilities, a life insurance policy can help your family maintain their standard of living in the unfortunate event that you’re no longer around to support them.

Life Cover Terminology

Understanding life insurance terminology is essential for policyholders to make informed decisions about their cover, we have broken down the meaning for some of the most used terms.

Why Choose The Insurance Surgery?

Rated ‘Excellent’ on Trustpilot.

We take pride in the experience that we offer, guaranteeing excellent service at all times.

25 years Experience.

With 25 years of specialist life and protection experience, we can find the perfect policy for you.

Access to a range of insurers.

With a broad selection of partners, we are well-equipped to find the best insurance deals for you.

Award-winning broker.

Known for making insurance simple, The Insurance Surgery is a trusted, award-winning broker.

Top Tips for Reducing Monthly Premium Costs.

There are methods to reduce the cost of your life insurance—just ensure you are entirely open and truthful during your initial application process.

Get Life Insurance as Early in Life as Possible.

The younger you are when you first purchase a life insurance policy, the lower your premiums will be. It really is as simple as that.

Reduce or Eradicate Alcohol Consumption.

Insurers view you as a lower risk when you drink moderately or completely abstain. That’s because of all the potential life-limited health issues that are connected to excessive alcohol consumption.

Maintain a Healthy BMI.

Similarly to alcohol consumption, being significantly overweight is linked to a wide range of serious health problems, including cancer, stroke and cardiovascular disease.

Maintain a Healthy Lifestyle.

Getting plenty of exercise and avoiding activities that might harm your health can extend your life expectancy, which is why insurers will often lower their premiums.

Don’t Smoke or Vape.

Smoking is linked to a range of cancers and respiratory diseases, all of which are potentially life-limiting. if you quit smoking for 12 or more you can half your monthly premiums.

Avoid Dangerous Activities and Dangerous Occupations.

Steer clear of dangerous activities such as skydiving and motor racing. And if possible, avoid occupations that involve the use of dangerous machinery or the possibility of being injured.

Your age

Your lifestyle

Your family’s medical history

Smoker Status

The length of your policy

Your occupation

Medical conditions

For a clearer idea of the average cost of life insurance, visit our Guide.

Life insurance cost, case study.

James is looking for life insurance to cover his mortgage and to give a lump sum to his wife and two children. James had a stroke ten years ago but doesn’t suffer from any symptoms.

We found James the increasing policy below:

Total Cover
Amount:

£750,000

Monthly Premium
Cost:

£41.57

Duration of
Policy:

Until age 70

Ask the Expert.

Understanding the average cost of life insurance can be a pivotal step in making informed decisions about your financial future. We asked Andy Mellor, Managing Director at The Insurance Surgery, what his tips are to get the best life insurance policy. Here are a few things to keep in mind:

Think ahead and plan for your future, this will help to work out how much cover you will need.

Compare quotes from multiple insurance providers to find the best value for your desired policy.

Your health can significantly impact your life insurance premiums. Quitting smoking, maintaining a healthy weight, and managing existing health conditions can help lower your rates.

Life circumstances change, so it’s essential to review your life insurance cover periodically to ensure it still aligns with your needs.

Any outstanding debts

Mortgage/rent

Number of dependants

Take-home pay or income from other sources

Facts About UK Life Insurance.

Insurance is vital for the UK’s economy, managing £1.6 trillion in investments and collecting over £16 billion in taxes. Around 310,000 people work in the sector, with a third directly employed by providers and the rest in support services like broking.

98% of Protection claims presented were paid out in 2019.

2.65m new individual and group protection products were taken out in 2019.

£5.7 billion was paid to 315,000 customers or families as a result of claims on protection insurance policies, an average of £15.8m each day.

Independent advice was taken by 82% of consumers.

There were 10.2m members of group life cover, group income protection and group critical illness schemes, of which 7.4m were life cover. Group cover is provided by employers for the benefit of their employees.

There were 20.7m individual term, whole of life, income protection and critical illness insurance policies in force. In addition, there were 237,000 long-term care, collective life and relevant life policies.

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Facts About Life Insurance.

Life insurance can serve multiple purposes, including income replacement, wealth transfer, estate planning, and business succession. But how does life insurance shape up with the UK population?

7.5 million families

in the UK have no life insurance or critical illness cover.

£40,000

The average life insurance policy in the UK covers only about £40,000.

28%

of UK adults believe life insurance is too expensive.

96.9%

of all protection case claims were paid in 2024

We’re here to help.

According to Nimbeo, the average cost of living for a family of four in the UK without rent is £2,731.80 a month. So when you factor in the cost of your mortgage or rent, it’s easy to understand the consequences of suddenly losing an income. That’s why life insurance is a must-have financial tool for everyone. But as the average cost of life insurance in the UK varies so dramatically between providers, it’s always a good idea to have a dedicated broker working on your behalf.

By choosing The Insurance Surgery, you will receive a dedicated adviser who will guide and support you throughout the process of securing life insurance. Our commitment to open and honest conversations and exceptional customer service sets us apart, ensuring you receive the cover you need at a fair and affordable price.

Contact us today at 0800 083 2829 to schedule a free consultation and take the first step towards protecting your loved ones’ financial future.

Data reference:

A term life insurance policy...

Term life insurance policy covers a specified duration, such as 10, 20, or 30 years. Should the insured individual pass away during this period, the policy pays a lump sum to their designated beneficiaries.

Whole-of-Life Insurance.

Whole-of-life insurance covers a person’s entire lifespan, provided premiums are consistently paid. It delivers a lump sum to beneficiaries upon the insured’s death.

Over 50s Life Insurance.

Over 50s life insurance guarantees acceptance without a medical report. With lower cover amounts and fixed premiums, it is used to cover funeral costs or leave a modest inheritance.

How different policies payout over time.

Terms & Conditions

These terms and conditions are promoted by the Insurance Surgery, whose registered office is at 2^nd Floor Pickford Street Mill, Pickford street, Macclesfield, SK11 6JD.

To be eligible for a gift card you must be a UK resident aged 18 or over.

In order for you to receive the voucher, you will need to have a minimum monthly premium of £20 and the policy to be live for a minimum of three months.

You must make all payments to your policy each month and in full.

If the policy taken out falls into arrears or lapses, then you will not be eligible for a gift card.

This offer is valid until 31st March 2025. However, should we decide to extend the offer, we reserve the right to do so, updating our terms and conditions accordingly.

The gift card is issued via Lifestyle and can be used at more than 250 of the UK brands. For more details about the brands included, please visit thelifestylevoucher.co.uk. By clicking this link, you will be leaving the regulated site of The Insurance Surgery. The Insurance Surgery is not responsible for any content posted by a third party within a non-regulated site.

You will be sent a link to claim your gift card. The gift card will expire 2 years after being issued and any outstanding balance will be lost; No cash alternative will be offered.

We reserve the right to refuse issue of the gift card should we suspect foul play; We reserve the right to cancel or modify these terms and conditions at any time and at our sole discretion; Our Privacy Notice explains how your data will be used.

Understanding Inheritance Tax (IHT) and Life Insurance

Understanding how IHT works and the ways to mitigate its impact can help you plan and ensure that your loved ones don’t face unexpected tax bills.

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Obtain a cheaper quote elsewhere, we’ll beat<br>the price and also give you a £50 gift card!*

We are committed to offering unbeatable prices. Our
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cover for your circumstances.

Frequently Asked Questions

Do you need life insurance for a mortgage?

No, when it comes to getting a mortgage in the UK, having life insurance is by no means a necessity. It is a time, however, when many people begin to look into life insurance quotes to protect their family’s financial security. Whilst majority do not, you may find that some mortgage lenders do stipulate that life insurance is required.

How much life insurance do I need?

Your personal life insurance needs are completely unique to your circumstances. For a clearer idea of your life insurance needs, get a quote from one of our experts or submit your information into our Life Insurance Calculator.

Can you have more than one life insurance policy?

Yes, you are able to have more than one ongoing life insurance policy. If you have doubts about your previous policy, however, and are looking for an updated one please speak to a member of our team – we can look at your current policy details and compare them to newer quotes.

If we can find you a better life insurance deal that offers better cover, or lower premiums we will make our recommendations. We will only ever suggest a switch to a new life insurance provider if we think that it is the right option for you.

Can I get life insurance while pregnant?

Yes, you can take out life insurance when you’re pregnant. In fact, starting a new family is one of the main reasons that people consider life insurance.

Do you have to pay taxes on life insurance payouts?

Most life insurance payouts are not taxed in the UK. You may, however, have to consider inheritance tax following the passing of a loved one.

What age should you get life insurance?

There is no correct age to begin considering life insurance. Everyone has their own needs and reasons when it comes to life insurance. Life insurance tends to be cheaper the younger you are, but most people begin to seek out life insurance quotes when they have a long-term partner, children, or a home.

Life insurance is unique – just like you.

Life Insurance for Parents

Life Insurance for Dads

Life Insurance for Sports & Hobbies

Life Insurance for Self-Employed

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For More Information, Check Out Our Latest Blogs

Stay informed with the latest updates in the insurance industry for 2025 here.

We aim to provide clear advice, breaking down the jargon, so you understand the importance of protection insurance.

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