Average Life Insurance Cost in the UK

If you’re trying to figure out how much life insurance costs in the UK, there isn't a single fixed number, but there is a reliable benchmark. Based on 2024 data from over 120,000 policies, the average life insurance premium in the UK is £32.64 per month. That's slightly lower than the previous year, showing a gradual trend toward more affordable cover.

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But here's the important part: this average is just a starting point. What you actually pay can look very different depending on your age, health, lifestyle, and the type of policy you choose.

What Does "Average Cost" Mean?

That £32.64 monthly figure comes from term life insurance policies with an average cover amount of around £160,000. It blends together people of different ages, health conditions, and coverage needs. In reality, some people pay as little as £5–£10 per month, while others may pay £50 or more. The variation is wide because life insurance is priced based on personal risk.The table below shows the average cost of life insurance by policy type, gender and smoking status based on our internal data during 2024 vs previous years. Please note the sum assured (cover amount) will vary.

Year	Level Term	Decreasing Term	Whole of Life	Over 50s Plan	Men	Women	Smoker	Non-Smoker	Joint Policy
2024	£35.52	£29.75	£59.93	£27.62	£40.95	£29.17	£35.65	£34.76	£44.03
2023	£37.02	£31.83	£85.61	£24.41	£42.80	£31.26	£35.94	£37.34	£36.50
2022	£37.84	£36.63	£131.27	£22.65	£44.59	£30.59	£36.15	£38.31	£55.22
2021	£33.77	£36.04	£116.86	£23.22	£40.51	£28.07	£32.04	£34.71	£50.83
2020	£32.22	£34.24	£113.14	£23.04	£38.73	£26.55	£32.29	£32.38	£51.40

one crore term plan

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@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
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@ Starting from ₹ 12/day⁺

How Age Affects Your Premium?

Age is one of the biggest pricing factors. For example, a healthy non-smoker taking a 20-year term policy with £150,000 cover might pay:

Around £4–£6/month in their 20s
Around £8–£13/month in their 30s
Around £11–£20/month in their 40s
£25+ per month in their 50s

The earlier you buy, the cheaper it tends to be. Waiting even 5–10 years can noticeably increase your premium.

Cost of Life Insurance for a Mortgage

In the UK, many people buy life insurance specifically to cover their mortgage. In such cases, decreasing term insurance is the most common choice.

The average cost here is about £29.75 per month, but younger buyers often pay much less. For example:

A 30-year-old might pay around £7–£8/month
A 40-year-old might pay closer to £14/month

Given that the average UK mortgage debt is over £130,000, this type of cover is often seen as essential financial protection.

What About Smokers vs Non-Smokers?

Smoking can significantly increase your premium. While the average monthly cost looks similar on paper (£35.65 for smokers vs £34.76 for non-smokers), that’s because non-smokers often take higher cover amounts. In like-for-like scenarios, smokers typically pay 30% to 60% more than non-smokers. For example:

A 35-year-old smoker might pay nearly double compared to a non-smoker of the same age and health.

Even vaping or nicotine replacements can still classify you as a smoker unless you’ve been nicotine-free for at least 12 months.

What Determines Life Insurance Premium in the UK?

Age
Age plays the biggest role. The younger you are when you take out a policy, the cheaper it is. As you get older, the likelihood of health issues increases, which pushes premiums up.
Health and Medical History
Insurers look closely at your current health, past medical conditions, BMI, and even your family’s medical history. Conditions like diabetes, heart disease, or high blood pressure can lead to higher premiums.
Smoking Status
Smokers typically pay significantly more—sometimes up to 50% higher—because of the increased risk of serious illnesses. Even recent quitters may still be classified as smokers for a period.
Sum Assured (Coverage Amount)
The larger the payout you want your family to receive, the more you'll pay. A policy covering £300,000 will naturally cost more than one covering £100,000.
Policy Type and Term
Term insurance is usually the most affordable. Policies with longer durations or added features—such as increased coverage or critical illness riders—come at a higher cost.
Lifestyle and Occupation
Risky hobbies like skydiving or hazardous jobs (such as construction or offshore work) can increase premiums due to the higher chance of injury or death.
Gender
While pricing is largely standardised, differences can still appear indirectly due to factors like coverage levels and life expectancy trends.

Wrapping It Up

The average life insurance cost in the UK—around £32.64 per month—gives you a useful reference point, but it’s not what everyone pays. You could pay far less if you’re young and healthy, or more if your needs are higher. The real takeaway is this: life insurance is more flexible and affordable than most people assume. And because pricing varies so much, comparing quotes is where the real savings happen.

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What is Term Life Insurance

˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. ₹361/month is the starting price for a ₹1 crore loan cover with an 8% interest rate for an 18-year-old male, non-smoker, with no pre-existing diseases, loan tenure up to 20 years, rounded off to the nearest 10

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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