500k life insurance [What’s the cost in 2024?]

We’re commonly asked how much it costs to take out a £500k life insurance policy.

The truth is there’s no one size fits all answer as the price you pay will depend on your personal circumstances and which policy type you choose to take out.

However, based on example quotes from our award-winning broker service, £500,000 of life insurance could cost £7.83 per month^.

Why not compare £500,000 life insurance through Reassured?

We work with a panel of top UK insurers to find you our best deals. Quotes are fee-free and without obligation.

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Is £500k life insurance enough?

Whether £500,000 of life insurance cover is enough for you will depend on your personal circumstances.

By adding together your financial commitments and other key costs, you can estimate how much cover you’re likely to need to help protect your loved ones.

A life insurance policy with a sum assured of £500,000 could cover a wide range of essential living costs and other expenses, such as:

  • Paying off the mortgage in full (depending on your remaining balance)
  • Long-term rental costs
  • Household bills & utilities
  • Family living costs
  • Additional childcare bills
  • Funeral costs
  • Inheritance tax bills
  • An inheritance

It’s important to note that the more cover you take out, the more you’ll pay for your premium so it’s important to ensure you’re taking out the right level of cover to meet your needs.

£500k life insurance calculator

Is 500k life insurance right for your needs? Enter your financial commitments and other key costs for an instant calculation of your ideal cover amount.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk
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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk
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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk
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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk
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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org
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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk
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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net
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How much does a 500k life insurance policy cost?

The price you pay for £500k of life insurance will depend on your personal circumstances.

During the application, you’ll need to provide insurers with key details in order for them to assess your eligibility and calculate your monthly life insurance premium.

These details include:

When taking out a policy with £500,000 of cover, the price you’ll pay will also depend on the type of policy you choose and your policy term.

20 year term life insurance £500k cost

The example monthly premiums below are based on a non-smoker, in good health, for £500,000 of cover and a 20 year term:

AgePrice per month
(level term life insurance)		Price per month
(decreasing term life insurance)
20£8.79£7.83
25£11.84£8.45
30£15.25£9.98
35£21.68£13.26
40£32.67£19.63
45£50.34£31.93
50£84.13£54.45

30 year term life insurance £500k cost

The example monthly premiums below are based on a non-smoker, in good health, for £500,000 of cover and a 30 year term:

AgePrice per month
(level term life insurance)		Price per month
(decreasing term life insurance)
20£11.95£8.78
25£14.31£9.78
30£20.03£12.70
35£29.60£18.30
40£46.17£28.95
45£74.68£45.76
50£130.52£77.27

£500k whole of life cost

The example monthly premiums below are based on a non-smoker, in good health, for £500,000 of cover:

AgePrice per month
20£261.73
25£279.89
30£309.90
35£358.33
40£427.26
45£495.93
50£534.33

As you can see from the table, pricing can vary significantly depending on which policy you opt for. Whole of life insurance tends to be a more expensive option due to the guaranteed pay out.

Comparing multiple £500k life insurance quotes can allow you to find the best deal for your needs.

At Reassured we can compare quotes from some of the UK’s best life insurance companies to find you our top deals. Simply get in touch for your fee free quotes.

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£500k life insurance policy options

If you’re looking to secure £500k life insurance, there are a range of policy types that can allow you to do this, including:

Level term life insurance

Cover for a set period with a fixed pay out amount.

  • Policy term up to 40 years
  • Pay out sum up to £1,000,000
  • Pay out is made if you pass away during the term
  • The funds could help to cover a mortgage and/or family living costs
  • FREE terminal illness cover
  • Available through Reassured

Decreasing term life insurance

Cover for a set period with a pay out sum that reduces over time.

  • Policy term up to 40 years
  • Pay out sum up to £1,000,000
  • Pay out is made if you pass away during the term
  • The funds could help to cover a repayment mortgage
  • FREE terminal illness cover
  • Available through Reassured

Whole of life insurance

As the name suggests, this policy provides whole of life cover and is a form of life assurance.

  • Policy lasts for life
  • Pay out sum up to £1,000,000
  • Pays out when not if you pass away
  • The funds could help to provide an inheritance and/or cover inheritance tax bills
  • Available through Reassured's advised team

Each life insurance policy is well suited to covering different aspects of your life.

The best life insurance for £500k will depend on what you want to cover. For example, term life insurance is often secured to protect a mortgage, while whole of life insurance is commonly used to help cover funerals costs and inheritance tax.

Comparing a range of policy options can help you to find the right one for your needs.

Why not use our award-winning broker service to compare fee-free quotes?

Can I get 500k life insurance with no medical exam?

It could be possible to secure £500k life insurance without having to undergo a medical exam.

However, you will be required to provide medical information during the application.

When applying for high levels of cover, particularly if any health concerns are flagged, insurers can request for a medical exam to take place.

Alternatively, a medical report may be requested from your GP with your permission.

This will allow insurers to get a better idea of your health and mitigate any potential risks with offering a high level of cover.

If you decline any requests for a medical exam or GP report your application won’t be able to continue.

Compare £500k life insurance quotes [Save money]

Each insurer has different pricing. Therefore, the quotes you receive for £500k life insurance may vary.

Comparing quotes is the best way to find the right policy for your needs at the right price for your budget.

At Reassured, you can compare multiple £500,000 life insurance quotes at once using our fee-free service - saving you time and money.

We can also help you through the entire application and answer any questions you might have.

Contact a friendly member of our team for your free and no-obligation quotes.

Compare £500k Life Insurance » Find Our Best Deal

Other frequently asked questions

What is the highest amount of life insurance?

The highest amount of life insurance will depend on who you take out cover with.

For example, through Reassured, the maximum sum assured you can secure is £1,000,000.

How much does 1 million life insurance cost?

A 30 year old, non-smoker in good health, taking out a level term life insurance policy (with a 20 year term) could pay £30.52 for £1,000,000 of life insurance cover.

This is just an example using our award-winning quote service.

The exact price you pay will be based on your personal circumstances, such as your age, health and policy details.

What is the average cost of life insurance in the UK?

The average cost of life insurance in the UK is currently £34.43 per month.

This is according to our internal research here at Reassured, calculated from 119,244 term life insurance policies sold through us between 01/01/23 - 31/12/23 with an average sum assured of £162,038.

What is the oldest you can get life insurance?

The maximum age limit for life insurance can vary between insurers.

However, with most types of cover, it’s usually possible to secure a policy up until your mid-eighties.

Why not read our full age limit for life insurance guide for more information?

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