Skip to main content
Little boy dancing in the rain

Life insurance uncovered

09 October 2025 Rebecca Brace

For many of us, life insurance remains a mystery unless we reach certain milestones,  such as getting married, buying a property or starting a family. 

But life insurance can be invaluable for anyone with financial dependants, so we decided to poll 2,000 UK adults to try and plug the nation’s life insurance knowledge gaps.

You might also like...

Do I need life insurance?

What we discovered:

 

  • On average, people estimated that life insurance costs £79.50 per month. In reality, L&G Life Insurance starts from just £5 and on average people paid £27.95 per month in 2024.
  • Almost a quarter (24%) said they don’t plan (or have never planned) to take out life insurance. 
  • Young people aged 18–24 review their personal finances most frequently (35.7 times a year)
  • Nearly a quarter (23%) of Londoners said that 'buying a home' was their trigger for taking out life insurance.
  • Despite the knowledge gaps we uncovered, 41% of respondents told us they have a “good” understanding of life insurance.

According to L&G data from 2024, 6.5 million UK adults are delaying financial products like life insurance until they hit life’s traditional landmarks – from marriage to a mortgage.

But due to a range of factors including the cost of living crisis, we’re hitting these milestones later than ever – if at all: 

  • Is the ‘baby bust’ delaying our life insurance plans? In 2025, England and Wales’s fertility rate hit the lowest levels since records began in 1938.
  • On average, buyers in England now get the keys to their first home at age 34. 
  • And we’re often taking our time to tie the knot. According to the ONS, the median age of a first marriage is around 31 and “has been steadily increasing since the 1960s”.

As millions of Britons push back their grand plans, are we leaving ourselves short when it comes to life insurance?

When would you (or did you) take out a life insurance policy, if at all?

I don't plan to take one out 24%
No time in particular 20%
When I buy/bought a home 15%
When I reach/reached a certain age (eg 30,40) 12%
When I have/had children 8%
Not sure 8%
When I get/ got married or have/ had a partner 7%
When I start/ started a new job or career 5%
Other 1%

 

We found that life insurance is often closely tied to property ownership – especially in London, where almost a quarter (23%) of respondents said that ‘buying a home’ was their trigger for taking out life insurance.

While a majority of people (56%) told us they’d considered or researched life insurance, for those who haven’t taken the plunge, it’s a familiar story.


What’s your biggest barrier to getting life insurance?

It's too expensive 27%
Nothing in particular 15%
I don't think I need it 15%
I haven't had time to look into it 13%
I don't understand how it works 9%
There is no biggest barrier to getting life insurance 8%
I'm worried I won't qualify 6%
Not sure 5%
Other 1%

 

Across the cities we polled, people in Brighton were the most price conscious – 52% said that life insurance is “too expensive”.

And across the generations, 45 to 54 year-olds were the age group most likely (33%) to cite cost as a financial barrier to getting life insurance.

Meanwhile, when asked what would persuade them to buy life insurance, people were most likely to say ‘lower monthly cost’ (35%). 

Life is expensive at the best of times, so the idea of paying another bill might raise an eyebrow or two. But when it comes to life insurance, the real cost comes from kicking the can down the road.

You can get L&G Life Insurance from as little as £5 a month, though in 2024, the average cost of our Life Insurance was £27.95 per month.

How does the true cost of life insurance compare to the public’s expectations?

  • Our respondents guessed that life insurance costs £79.50 per month on average – significantly higher than the reality.
  • On average, men estimated that life insurance has a higher monthly cost (£92.08) than women (£67.57).
  • Younger adults (25-34 years-old) gave the highest estimates on average (£97.96) of any age group.

Given these discrepancies, do we overestimate our life insurance knowledge?

How would you rate your understanding of life insurance?

Excellent (I understand it very well) 18%
Good (I have a fair understanding) 41%
Average (I know the basics, but have questions) 29%
Poor (I understand very little) 8%
Non-existent (I don't understand it at all) 4.5%

 

Almost a quarter (23%) of men said their knowledge was “excellent” compared to 13% of women. And while “excellent” was highest in Greater London (28%) and among 25-34 year-olds (33%), there was a sharp reduction among older adults, who often have the greatest life insurance needs. Just 12% of people aged 55+ said their life insurance knowledge was excellent.

Additionally, we found that many younger adults without children may not be getting the financial cover they need. For example, these respondents were most likely to get life insurance in order to protect a partner (37%) ahead of funding their lifestyle following an illness (22%). While single or joint life insurance can be a great way to protect a partner, a payout can also be used to protect other financial dependants – from older parents to siblings who need financial support.

Most of us remember having a piggy bank as a child, but during adulthood, our financial lives get a little more complicated. There are good habits we can all embed, such as regular financial check-ins, that may lead us towards getting the financial cover we need. And according to our survey, many young respondents in particular are ahead of the curve.

How often, if at all, do you review your personal finances?

More than once a week 2%
Once a week 23%
Once every few weeks 19%
Once a month 24%
Once every 2-5 months 11%
Once every 6-11 months 5%
Once a year 5%
Less than once a year 0.05%
Never 5%
Not sure 6%

 

Respondents told us they review their personal finances on average 25 times a year. Young people aged 18–24 were the most frequent reviewers (35.7 times a year) while regionally, Northern Ireland had the highest frequency (30.54 times a year). 

The life insurance life cycle

 

While wedding bells, new homes and newborn babies are often the reason we get life cover, there is more to life insurance than meets the eye. 

Whether you’re looking to get life insurance as a renter, a single household or a self-employed worker, L&G Life Insurance can give you peace of mind – whatever the future may bring.

Learn more about life insurance

Related Articles

Is insurance worth it?

Is life insurance worth it?

Life insurance can be worth considering if other people rely on your income or assets. Read our guide on the reasons you might want to get life insurance.

Do I need life insurance

Do I need life insurance?

If you've got people that financially depend on you, life insurance is an important consideration for you. If you're unsure on whether you need life cover or not, our guide can help.

Piggy bank

Is cheap life insurance better?

Everyone wants the cheapest life insurance, but does that mean you’ll get the best policy? Read more about how to find low cost life insurance.

Rebecca Brace

Rebecca Brace

Insurance Content Specialist, L&G Retail, Insurance

Rebecca’s a digital content manager, focusing on protection. She makes sure that our customers can find all the content they need at every stage of their insurance journeys, either on our website or via a search engine. She also helps develop the content itself, working with other internal teams to ensure that it’s both accurate and complies with all relevant regulations.

More about Rebecca