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How much does Life insurance cost?
Life insurance, also known as Life cover or Life assurance, is an insurance policy that protects your loved ones financially if you die. It could replace the loss of your income, pay off your mortgage and cover the cost of raising children until they leave home, giving your spouse and children financial stability when they need it most.
Everyone has different requirements of Life insurance cover depending on their stage and status in life, and as such the cost of putting cover in place varies too.
The good news for anyone thinking about putting Life insurance place or switching their existing policy, however, is that Life insurance costs in the UK can be very good value. Often just a few pence a day is all you need to provide your loved ones with the financial protection they need.
Life insurance cover starts from as little as £5 per month, although lifestyle choices and other factors could also affect the cost to you. It’s always a good idea to compare Life insurance quotes with a number of providers, therefore, to make sure your policy covers your individual circumstances at a price you can afford.
What can affect the cost of Life insurance?
There are a number of factors that will affect your monthly premiums, and your personal circumstances play a large part in deciding Life insurance cost.
Insurers mostly consider:
Your age: Generally, the younger you are, the lower your premiums. Younger people are less likely to die while covered, and with age comes a higher chance of illness and other health conditions which could affect the premium you pay. Choosing a longer policy term, so that you don’t have to take out Life insurance later in life, can help keep your monthly premiums down.
Your health: Your health plays a big role in the cost of Life insurance premiums. A healthy person presents less risk of dying while covered than someone with a significant or ongoing health condition. Your family’s medical history will also be taken into consideration - pre-existing conditions like diabetes or high blood pressure, for example, alongside conditions like heart disease, cancer or strokes.
Your lifestyle: Your lifestyle could make premiums higher if you smoke or are overweight. Insurers will usually take into consideration your BMI and whether or not you smoke or drink.
Your job: Some occupations are more dangerous than others. If you work in a job that’s considered to be high-risk, it could affect your Life insurance costs. Working a risky job doesn’t automatically mean your premiums will be higher, but it is something which might be taken into account when taking out Life insurance, and critical illness cover too.
What can I do to get the best Life insurance cost for me?
When you apply for Life insurance cover, there are a few ways that you can help shape your policy, and your premiums. There are different types of cover you can choose:
Fixed or ‘term’ Life insurance: This runs for a set number of years and pays out if you die within the term. It’s a good option if you want to make sure dependants will be provided for until they reach 18, or until you retire.
Whole of Life insurance: Whole of Life insurance is a Life insurance policy that guarantees your family receive a pay-out when you die. Whole of Life insurance only ends when you die. This is why the pay-out is guaranteed. Whole of Life insurance costs more than other policies as it is the safest way to protect your family, and guarantees to pay out the full sum attached to your policy regardless of how old you are when you pass away, provided your monthly premiums are paid throughout.
Decreasing Life insurance: Decreasing term Life insurance is a type of Life insurance policy that’s paid over a fixed period of time. The level of pay-out decreases over the length of the policy. It’s often used to cover the balance of a repayment mortgage. Sometimes, a mortgage lender will insist that Life insurance is in place before your agreement starts.
Increasing Life insurance: This type of policy works in the opposite way and might be an option if you think you need a greater amount of cover as the term goes on, such as to pay university fees or if you’re worried about the cost of living rising dramatically. These policies are normally based on the Retail Price Index (Inflation) and your insurer will contact you each year to let you know how much your policy will increase by.
Over-50s Life insurance: If you’re 50 or over, you might be thinking more about covering funeral costs or leaving an inheritance. Over-50s Life insurance is guaranteed to pay out and is the same as a Whole of Life policy in that respect - so regardless of your age when you die, your family will benefit from the full amount attached to the policy. Over 50s Life insurance policies also offer guaranteed acceptance so no medical questions will be asked of you, although the amount of cover provided for will be lower than regular life insurance policies.
Joint Life insurance: Joint Life insurance is a Life insurance policy that covers two people, but it only pays out once. Typically, this payment will be a lump sum, which goes to the survivor after the first person dies within the term of a policy. When the policy ends, there’s no further cover for the survivor. If the surviving partner requires further cover, they would need to take out a new, single policy.
Guaranteed insurability: Guaranteed insurability allows a policyholder to increase the level of cover in certain circumstances, such as on the birth of a child or on adoption, taking out a larger mortgage or getting married.
What else could affect my Life insurance cost?
If you are part of a couple, you might consider taking out a joint policy that will pay out in the event of one of you dying. This can be cheaper than paying the premiums on two separate policies, but bear in mind that joint Life insurance only pays out on the first death – after that the cover ends.
How do I buy Life insurance?
The best way to make sure you’re getting the right policy for your individual needs is to compare Life insurance quotes from a number of providers. As the leading Life insurance comparison website in the UK, ActiveQuote partners with Money Supermarket, Gocompare and uSwitch to bring our customers the best cover at the right price.
When you compare the cost of Life insurance with ActiveQuote, you will be asked a few simple questions including your name and address, your date of birth, whether or not you smoke and your monthly Life insurance budget.
Different policies offer different benefits, so make sure that the level of cover suits your needs. You can also speak to one of our advisors in person for some impartial advice before you buy if you prefer.
Why compare Life insurance with ActiveQuote.com?
Buying Life insurance can be daunting and we understand how important it is for you to feel confident you have the cover that’s right for you and your family. The majority of our policies are straightforward and can be bought online. ActiveQuote prides itself on our excellent customer care, with a highly trained team ready to take your call and answer any queries you have.