Average cost of life insurance
Some things in life are priceless, and that includes spending time with our loved ones. But given life insurance comes at a cost, how much can you expect to pay on average?
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The average cost of Life Insurance per month is £26.33, according to L&G figures from 2025. But of course, paying the average amount doesn’t mean you’ll have the right protection in place. In fact, two people paying the same could have different levels of cover.
If you’re offered a life insurance policy, your monthly payments will be based on a range of factors, for example:
- Your age, health and lifestyle. Including age, smoker status, weight (Body Mass Index), occupation and family medical history.
- How much life insurance do you need? This will depend on factors like your mortgage or rental costs, and other financial commitments like childcare and outstanding debts.
- How long do you want your policy to last? Some people like to choose a life insurance term length for a certain number of years; for example, to cover the length of a mortgage, or the period before a child leaves home as an adult.
- Which type of life insurance works for you? When you apply, you can opt for a ‘level term’ or ‘decreasing’ life insurance policy. On average, the payout for a ‘decreasing’ policy will be lower, since it is designed to protect a repayment mortgage so reduces over the course of the policy.
You will have to decide how much cover you need and for how long. Our life insurance calculator can help you estimate how much cover you may need.
Your age and life insurance costs
It’s a fact of life that as we get older, the likelihood of dying increases. But what impact does this have on our average life insurance costs?
But of course, age is only one factor behind your monthly life insurance costs.
While it’s useful to know the average cost of life insurance, it doesn’t tell us everything. The type of policy you choose also plays a part. For example, Decreasing Life Insurance usually costs less than Life Insurance.
You could also consider Critical Illness Cover, which can be added to Life Insurance or Decreasing Life Insurance for an extra cost. It could pay out a cash sum if you’re diagnosed with one of the conditions covered during the length of your policy, and you survive for 14 days from diagnosis.
In 2025, the average payout for a valid L&G life claim was £37,788, totalling £527 million.
Learn more about how life insurance payouts work.
When you get a life insurance quote, you'll have the choice of getting a policy on your own or with your partner. It's worth pointing out that a joint life policy is likely to be less than two equivalent single life policies. It isn't only a question of cost. You'll have to decide what option is right for you and there could be more to it than price.
- Joint life policies can be a good choice if you and another person need life insurance for the same reason; for example to cover a joint mortgage. If there is a valid claim, the policy would pay once and then come to an end.
- Single life policies can be right for couples with different protection shortfalls. If there is a claim on one policy, the other person's protection would still be in place.
For more information, read our guide to single versus joint life insurance.
Calculate your life insurance cost
None of us want to worry about our loved ones facing an uncertain financial future. Life insurance can help by paying a cash sum if you were to die while covered by the policy.
If you’re thinking about life insurance, there are a few things to consider.
- Make sure the cash sum you choose is enough to protect your loved ones.
- Decide how long you want your policy to last.
- Finally, you'll need to be comfortable that you can afford your policy while it's in place.
Try our life insurance calculator to help you choose how much cover you might need.
