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Life insurance is very much down to the individual. Both in the sense of what policy is “the best”, but also what terms, conditions and pricing one might receive. That being the case, asking “what is the average life insurance cost in the UK?” might then be considered an inconsequential question, as it could be argued such a number doesn’t give a true representative figure for the population, no matter the demographic. For example, a healthy 50 year old might have more favourable terms than an unhealthy 30 year old. As it is, we will conduct a number of case studies, all assuming varying lifestyles and ages, smokers and non-smokers etc to figure an average. We will also look at the average cost of a healthy applicant at various ages of 30, 50 and 70 so that there is some kind of baseline.
Life insurance is a type of financial service that helps you sleep better at night, and give your loved ones peace of mind that should the worst happen to you, they won’t be worrying about monetary stresses or financial obligations. In the event of the policyholder passing away, life insurance policies pay out a lump sum to their named beneficiaries. Beneficiaries can claim this payout on presentation of policy documentation and a certificate of the policyholder’s death.
Nonetheless, to get straight to the figure you came here for, the average life insurance cost across a variety of baselines (age, family health, smoker, non-smoker etc) is £35.29 . We took a smoking 30 year old, against a non-smoking 50 year old, together with a 70 year old with a shorter policy term and everything in between, to reach this number.
What we found was that biggest differentiator between prices was age, and within those different age brackets the averages are as follows:
Average Monthly Cost for Life Insurance Policy for a 30 Year Old: £9.95
Average Monthly Cost for Life Insurance Policy for a 50 Year Old: £41.30
Average Monthly Cost for Life Insurance Policy for a 70 Year Old: £95.50
We compare plans from the leading life insurance providers
There are many different things that insurers take into account when pricing your policy, and as you can from the above, it looks like age is a major consideration. However, it is not the only primary indicator, so here are a few factors that can also be taken into consideration:
Clearly there are some things on the list above that a person can change, and things that some people cannot. For example, family medical history and your own history are set in stone, so whatever conditions might be noted there will stay exactly where they are. However, things such as smoking, alcohol and dangerous sports activities are all within our control to change should we want to.
To give you an idea on how much a policy can change if you look to improve your lifestyle and change it for a healthier alternative, on average (across all age groups), the difference between a non-smoker’s monthly premium and a smoker’s is around +125%!! Indeed the average 30 year old non-smoker premium was £6.50, whilst the average 30 year old smoker’s premium was £13.55.
Here are a few things many policyholders can change which will decrease their premiums: