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

Why the cost of life insurance matters

Before we dive into pricing trends, let’s start with a warning that cost should never be the “be-all and end-all” when choosing life insurance. However, it’s naturally a key consideration for most people when deciding on a suitable policy and provider. After all, life insurance is typically a long-term financial commitment, so you need to be confident that you can afford the monthly premiums for years to come if you want your cover to remain in place.

This affordability aspect isn’t lost on consumers, with research by the Financial Conduct Authority (FCA) revealing that low premiums were the second most common reason people chose a life insurance provider in 2024. 

What does sum assured mean?

The sum assured is the amount of money that an insurer agrees to pay your beneficiaries if you die while your life insurance policy is active, provided you haven’t breached any terms and conditions.

Think of it as the level of life cover you choose at the start when you set up a new life insurance policy. It can be a fixed amount or increase or decrease over time, depending on the type of policy.

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The average cost of life insurance can be useful to give you a ballpark figure, but what you will actually pay will depend on your unique personal situation and the choices you make when setting up your policy. Premiums will vary from person to person, depending on a variety of different factors. These include:

• Your personal circumstances: such as your age, health, occupation and lifestyle. This includes whether you smoke, drink alcohol or have any high-risk hobbies.
• Who’s covered by the policy: whether it’s a single or joint life policy.
• The amount of cover: the higher the sum assured, the more expensive the premium.
• The length of the policy term: longer terms usually mean a greater likelihood of a payout, leading to a higher cost to you.
• The type of life insurance: for example, your monthly payments for level term, decreasing term, over 50s life insurance and whole of life cover will all be priced differently to reflect their relative risks.
• Optional add-ons: such as critical illness cover or waiver of premium, can increase the cost of life insurance.

Throughout this pricing guide we will show you how these different factors can affect the cost of life insurance.

Life insurers can’t price based on your gender

While there are many factors that insurers can price on, gender isn’t one of them. It's often wrongly assumed that your sex will influence the cost of your life insurance premium, but this hasn’t been the case since December 2012, when a European Court of Justice ruling came into effect banning insurers from using gender to help calculate premiums.

The introduction of “gender neutral pricing" means that an equivalent male and female should pay an identical premium for the same life insurance policy from the same provider. Previously, men faced higher life insurance premiums due to their shorter life expectancies.

Whole life insurance is the most expensive type of life insurance, with an average cost of £102 per month. This is followed by level term life insurance with critical illness cover (£81.68) and decreasing term life insurance with critical illness (£53.47).

The type of life insurance you choose has a significant impact on the price that you will pay, as each product works slightly differently and carries its own level of risk for the insurer. Generally speaking, policies that offer lifelong cover tend to be more expensive than those with fixed terms or decreasing benefits.

The table below provides a snapshot of the average cost of life insurance for various policy types. Please note that, except for level term life insurance and decreasing term life insurance, including policies with critical illness, the sum assured used to calculate these averages varies by product. This means comparisons between policy types should be considered indicative only, as actual premiums will depend on factors such as age, health, lifestyle, and the chosen level and length of cover.

In 2026, the average cost of level term life insurance is £25.05 per month, based on our most commonly requested sum assured of £150,000. This average includes all ages, smoking statuses and policy lengths.

For non-smokers, the average cost of level term life insurance is £15.06 per month, whereas smokers pay significantly more, with an average premium of £35.02 per month, more than double the cost.

Level term life insurance is the most popular type of life insurance in the UK. It can be used to provide financial support for your family’s future by covering living costs, paying off existing debts such as a mortgage, or both. Its main appeal is that it offers a level of certainty about the amount that your beneficiaries will receive, as it pays a fixed lump sum regardless of when you pass away during the policy term.

The table below shows how the average cost of a £150,000 level term life insurance policy with a 25-year term varies by age and smoking status. We’ve used a term of 25 years because 25.6 years is the average term that those looking to obtain life insurance quotes through us select.

The table clearly shows the major influence that both age and smoking status have on the cost of level term life insurance, particularly when smoking is combined with an older age applicant. Some of the key life insurance pricing trends are:

• Premiums increase with age: For both non-smokers and smokers, the monthly level term life insurance premium rises steadily as age increases. A 20-year-old non-smoker pays an average of £4.65 per month, while a 55-year-old would pay £52.70, more than 11 times as much. This increased cost of life insurance reflects the higher mortality risk associated with ageing.

• Smokers pay significantly more: At every age bracket we researched smokers pay substantially more than non-smokers. The health risks associated with smoking often mean paying more than double the non-smoking premium. For example, at age 45, the average smoker premium is £46.09 per month compared to £19.45 for a non-smoker. 

• The smoker cost gap widens sharply with age: The difference in premiums between smokers and non-smokers becomes more pronounced as you get older. At age 25, the difference is relatively minor (£2.36), but by age 55, the difference grows to £84.66 per month, with smokers paying over 160% more than non-smokers for the same policy.

The average cost of decreasing life insurance in 2026 is £16.58 per month, based on a sum assured of £150,000, which is the most frequently requested amount by those looking to take out cover through our website. This figure encompasses premiums for all age groups, including smokers and non-smokers, and policy terms ranging from 10 to 30 years.

Drilling down into the data reveals that the average monthly decreasing life insurance premium for a non-smoker is £10.53, compared to £22.54 for an equivalent smoker.

Decreasing term life insurance is the cheapest type of life insurance because the amount that will be paid out if you pass away during the policy term reduces over time. This structure makes a decreasing term life insurance well-suited for covering debts that gradually reduce, such as a repayment mortgage. Its affordability makes it a popular choice for many homeowners with limited budgets, which helps explain why decreasing term life insurance is the second most commonly purchased type of life insurance in the UK.

As with level term life insurance, risk factors such as age and smoking play an influential role in the cost of decreasing term life insurance, with smoking more than doubling the cost of cover from the age of 45. It’s also worth pointing out that the difference in the average price between smokers and non-smokers is less marked at younger ages.

How much does life insurance cost to cover a mortgage?

The average cost of life insurance to protect a mortgage is £8.99 per month for mortgage life insurance and £11.85 for level term life insurance. This is based on the average outstanding UK mortgage debt of £156,690 (source Bank of England) and an average age of first-time buyers of 34 (source gov.uk).

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

The average cost of term life insurance with critical illness is £67.58 based on a sum assured of £150,000 across all the ages and terms we surveyed. It's important to note that this average applies to a combined policy, which pays out once, either upon death or diagnosis of a critical illness, whichever occurs first.

The type of policy structure you choose (level term or decreasing term) also affects the cost. For level term life insurance with critical illness, the average premium is £81.68, with non-smokers paying £63.27 and smokers paying £97.80. The average cost of decreasing term life insurance with critical illness is lower at £53.47, with an average premium of £41.86 for non-smokers and £63.63 for smokers. 

Overall, adding critical illness cover to a term life insurance increases the premium by an average of 225%. This significant increase reflects the additional risk being covered, as you're not only protecting against the risk of death but also against the financial impact of being diagnosed with a serious illness.

You can, of course, opt for a standalone critical illness policy, which means that it will be separate from your life cover and therefore provide you with two payout opportunities, but this will cost more than a combined policy. 

What is the average cost of whole of life insurance?

The average cost of whole of life insurance is £102 per month, according to data we analysed from Swiss Re Term and Health Watch 2025. This research is based on an average sum assured of £128,218 across customers of all ages, and with different lifestyles and medical histories.

Since whole of life insurance covers you for the rest of your lifetime rather than a specific period, it makes sense that it usually costs significantly more than term life insurance. People typically use it to help cover inheritance tax or ensure their family has financial support, regardless of when they pass away. 

Affordability is an important consideration for all types of life insurance, and this is especially true with whole of life insurance as there is no time limit as to how long you will need to pay your monthly premiums. You could be paying for cover well into your retirement and later years. It means that the exact cost of your policy over its lifetime is impossible to determine at the outset.

What is the average cost of over 50 life insurance?

The average cost of over 50s life insurance is £29.45 per month, based on a sum assured of £4,285, which is the average amount for a simple attended funeral (source: SunLife Cost of Dying 2025 Report). We have used this figure because most people tend to take out an over 50s life plan to cover funeral costs.

As you would expect, the average cost of over 50 life insurance is lower for non-smokers (£24.42) than for smokers (£35.41) and increases significantly with age.

Over 50s life plans can be relatively expensive, especially when you consider that the payouts are usually modest. However, the higher cost associated with over 50s life insurance reflects the fact that the payout is guaranteed as long as you keep up with your premiums and the lack of medical underwriting. Because insurers accept applicants regardless of any pre-existing medical conditions, they take on more risk, resulting in higher premiums.

The older you are when you take out an over 50s life plan, the more you’ll pay each month. At age 50, the average premium is £17.75, but this increases to £56.62 by age 75, more than three times as much. Smoking will typically add between 38% and 71% to the cost of an over 50s life insurance plan, depending on your age.

What is the average price of family income benefit?

The average cost of family income benefit is £21 per month, based on analysis of data from Swiss Re Term & Health Watch 2025. The average is based on a family income benefit policy that pays out £22,224 per year.

Unlike other term life insurance products, family income benefit pays out a regular monthly income rather than a one-off lump sum if you pass away during the term. It's designed to replace your income, allowing your family to meet financial commitments such as a mortgage or loan and cover everyday living costs.

Family income benefit usually offers affordable life insurance, as the total amount that the insurer may need to payout reduces each year the policy is in place.

How does term length affect the average cost of life cover?

When it comes to the cost of a term life insurance policy one of the most important factors that will influence price is the length of term that you select. The longer the policy term, the more you will pay, as there will be a higher likelihood of making a claim.

The table below shows how the average cost of life insurance varies according to term length for both a level term and a decreasing term policy, for an individual aged 40 with a sum assured of £150,000.

There is a consistent rise in premiums across all categories as the term length increases, which reflects the insurer’s exposure to higher risk over a longer period. For a 40-year-old non-smoker, the average level term life insurance premium increases from £8.82 for a short 10-year period to £14.42 for longer cover over a 30-year term, a 63.6% cost increase. 

For a smoker, premiums rise more sharply, from £16.60 for 10 years of cover to £31.95 for a 30-year term, an increase of 90.5%. The pricing trend is similar with decreasing term life insurance.

How does the amount of cover affect the cost of life insurance?

The amount of life cover that you choose (also known as the sum assured) will have a major impact on the cost of your life insurance premium. The higher the potential payout, the more you’ll pay in premiums, regardless of the type of life policy or whether you smoke.

The table below shows how the average cost of life insurance increases with the sum assured for a 25-year level term life insurance policy for a 40-year-old. 

Although the cost of life insurance rises with the sum assured, it's important to note that the increase isn’t linear: doubling your cover doesn’t double your premium. For instance, increasing your cover from £100,000 to £200,000 results in a 66% increase in the average cost for non-smokers and a 74% increase for smokers. Meanwhile, moving from a sum assured of £500,000 to £1million increases premiums by 90% for non-smokers and 95% for smokers.

Examining the cost per £1,000 of cover is a useful way to assess the cost efficiency of different levels of life insurance.

In terms of cost efficiency, the table shows that a larger sum assured provides better value per £1,000 of life cover. For instance, for non-smokers, the cost per £1,000 of cover decreases from £0.09 at £100,000 to £0.06 at £1 million, while for smokers it decreases from £0.19 to £0.14 over the same range.

While a larger policy may appear more cost-efficient, you should always base your sum assured on what you actually need to protect your financial responsibilities to avoid paying for life cover you don’t need.

The average monthly cost of a joint life term insurance policy is £36.84, based on a sum assured of £150,000. This figure has been calculated across a range of ages, smoker statuses and term lengths for both level term and decreasing term life insurance. For ease of comparison, we have assumed that the joint life couple are the same age.

Our survey shows that the average life insurance monthly cost for a joint policy for a non-smoker is £22.46, and £51.22 for a smoker.

However, it is worth looking at how joint life insurance premiums vary depending on the type of term insurance you select. The average cost of a joint life level term insurance policy is £45.14 per month, with non-smokers paying an average of £27.30 and smokers paying £62.98. By contrast, the average cost of a joint life decreasing term insurance policy is much lower at £28.55, with a non-smoker paying an average of £17.66 and a smoker £39.47.

When you take out life insurance you’ll need to decide whether you want a single life policy taken out in just your name or a joint life policy which will cover you and your partner. A joint policy will always cost more than a single life policy, but it will be cheaper than two equivalent single life policies. However, keep in mind that you will receive less financial protection as a joint life policy will only pay out once, and will usually end when the first person on the policy passes away. A joint life policy also offers less flexibility.

How much cheaper is a joint life policy than two single life policies?

Overall, the average cost saving of a joint life policy compared to two single life policies is around 10.36%. The table below shows the potential savings offered by a joint life policy at different ages for non-smokers and smokers based on level term life insurance.

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The cost savings of a joint life policy generally decline with age, with the largest savings for younger age groups. For instance, a joint life level term insurance policy for non-smokers aged 25 is 17.9% cheaper than two single life policies, compared with just a 6.2% saving for a couple aged 45.

For many, the decision between a joint life policy and two separate policies will ultimately come down to what they consider best value for their needs.

The average cost of life insurance for a smoker is £28.78 per month, based on all the different types of term life insurance that we surveyed for a £150,000 sum assured. The quotes assumed someone was smoking 10 cigarettes a day, which is the average number for a UK smoker according to data from the Office for National Statistics.

Overall, on average smokers pay 125% more for their life insurance than non-smokers (£12.79).The amount that smokers will pay will depend on the type of term life insurance they opt for. For a level term life insurance the average smoker premium is £35.02, while for a decreasing term life insurance policy the average is much lower at £22.54.

Smokers consistently pay significantly more than non-smokers to reflect the higher health risk they pose to insurers. You will generally be classed as a smoker if you have smoked or used any tobacco-related products (this includes nicotine patches or vaping) within the last 12 months. Insurers will typically ask you how much you smoke, with heavier smokers paying a higher premium. 

When it comes to life insurance, smoker status becomes more financially penalising with age. At age 20, smokers typically pay between 25.85% and 31.40% more than non-smokers for the same cover, depending on the type of term life policy, but by the age of 40 they may be paying double (between 96.56% and 111.18%). By age 55, smokers can expect to pay over 160% more than non-smokers, which is more than 2.5x the cost, illustrating how smoking becomes an increasingly costly risk factor as applicants age.

While the table shows how smoking affects the cost of term life insurance, it will also be a significant pricing factor for other forms of life insurance, such as whole of life and over 50s life plans.

Life insurance prices can vary widely by provider

One striking finding from our life insurance pricing research is the significant variation in the cost of life insurance between providers for the same product and cover options. For example, the difference between the lowest and highest premium for £150,000 of level term life insurance over 25 years for a 45-year-old non-smoker is £14.20 per month, a difference of 34.12%. Over the full policy term, that could mean paying £4,260 more for identical cover, simply based on your provider choice.

These variations are partly due to UK insurers having different pricing models based on how they assess risk and their underwriting criteria. It means that they may price more competitively for some types of customers than others.

Market competition also plays a role. There may be less variation in pricing where competition is intense, perhaps for customers where demand for cover is high or the risk to the insurer is low, compared to the opposite scenario whereby customer demand is low and the insurer risk is high. You should never assume that just because a provider prices competitively for one group of customers, it will offer the best-priced policy across the board.

How to compare the cost of life insurance

Our latest pricing research reinforces the importance of shopping around and comparing life insurance quotes to find the best value cover for your needs. It's also a strong case for working with a life insurance broker or financial adviser, who can help you identify the most competitive premium based on your unique circumstances.

To get personalised life insurance quotes or to speak with a life insurance expert, please complete our form.