In this article:

Reassured summary icon

Key takeaways:

  • As of 2025, the average cost of life insurance in the UK was £32.42
  • The average cost has dropped for the second year in a row. Last year (2024) the average cost was £32.64, down from £34.43 in 2023 (according to our internal data)
  • The price you pay for life insurance is based on your personal circumstances
  • Smoking, having a medical condition, drinking over 14 units per week and having a high-risk occupation or hobby could increase the price that you pay
  • Being in good health, without any other high-risk factors (like the ones mentioned above) can help you to save money on the cost of life insurance
  • The price of life insurance can vary depending on which policy type you take out (we breakdown all the different prices in this article)

What is the average life insurance cost per month?

In 2025, the average cost of life insurance was £32.42 per month. This is according to our internal data here at Reassured, the UK’s largest life insurance broker*.

We calculated this cost from 137,247 term life insurance policies (both level and decreasing) sold between 01/01/25 – 31/12/25, with an average cover amount of £172,203.

While this figure can give you an idea of how much a policy could cost, it’s important to know that the price of life insurance varies significantly between individual applicants.

Life insurance through Reassured can cost from as little as  20p-a-day † but the price you pay is typically based on:

  • The policy type you take out
  • Your level of cover
  • Your policy term
  • Your personal circumstances

It’s essential to compare quotes to find a great price on a policy. Why not do this using our FCA-regulated broker service?

We work with some of the UK’s leading providers to find you our most cost-effective life insurance. Simply get in touch for your personalised, fee-free and no-obligation quotes.

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Average cost of life insurance breakdown

Below we break down the average cost of each type of life insurance.

The data used has been taken from our internal sales data over a 12-month period between 1st January and 31st December each year, with customers of all applicable ages.

Level term life insurance icon

Level term life insurance

In 2025, the average cost of level term life insurance was £35.34, with an average sum assured (cover amount) of £144,582.

This is based on 116, 713 level term policies, making level term life insurance our most commonly sold policy type.

See below how this price compares to previous years:

YearAverage cost
2025£35.34
2024£35.52
2023£37.02
2022£37.84
2021£33.77
2020£32.22
Decreasing term life insurance icon

Decreasing term life insurance 

The average cost of decreasing term life insurance in 2025 was £29.50.

This is based on 20,450 policies sold between 1st January and 31st December with an average sum assured of £199,824.

Decreasing term life insurance tends to be the cheapest option as your risk to the insurer reduces as your cover amount decreases over time.

See below how this price compares to previous years:

YearAverage cost
2025£29.50
2024£29.75
2023£31.81
2022£36.63
2021£36.04
2020£34.24
Critical illness cover icon

Life insurance with critical illness cover 

The average cost of life insurance with critical illness cover was £34.63 – based on 15,662 policies sold through throughout 2025 (with an average sum assured of £68,327).

See below how this price compares to previous years:

YearAverage cost
2025£34.63
2024£32.34
2023£35.31
2022£37.41
2021£35.59
2020£35.79
Whole of life insurance icon

Whole of life insurance 

In 2025, the average cost of whole of life insurance was £24.48 with an average sum assured of £111,867.

Traditionally, whole of life insurance is the most expensive type of life insurance (due to offering lifelong cover).

In 2025, we sold fewer whole of life policies than term life insurance policies, contributing to a much lower average cost. As more policies were sold in previous years, these costs are more accurate of the cost of whole of life insurance.

See below how this price compares to previous years:

YearAverage cost
2025£24.48
2024£59.93
2023£85.61
2022£131.27
2021£116.86
2020£113.14
Over 50 life insurance icon

Over 50s life insurance 

The average price of over 50s life insurance in 2025, according to our internal sales data, was £30.41.

This is based on 41,244 policies sold with an average sum assured of £4,680.

See below how this price compares to previous years:

YearAverage cost
2025£30.41
2024£27.62
2023£24.41
2022£23.65
2021£23.22
2020£23.04

Does the average cost of life insurance vary between men and women?

Yes, although gender isn’t a factor that determines the price you’ll pay, the average cost for men and women is often different.  

In 2025, the average premium price for women was £28.58 compared to £32.83 for men. The table below shows that there has also been a difference in previous years:

YearAverage cost for menAverage cost for women
2025£32.83£28.58
2024£40.95£29.17
2023£42.80£31.26
2022£44.59£30.59
2021£40.51£28.07
2020£38.73£26.55

The data used has been taken from our internal sales data over a 12-month period between 1st January and 31st December each year, with customers of all applicable ages for both level and decreasing term policies.

The difference in price could be for a number of reasons. For example, men and women may take out cover for different reasons and there could be differences in how much cover they take out.

We could consider things such as:

  • The gender pay gap – according to the Office of National Statistics (ONS) the median hourly pay for full-time employees was 6.9% less for women than men. Therefore, men could be taking out a higher level of cover to protect their income[1].
  • Personal debt– men typically have more debt than women, which could also lead to them taking out a higher level of cover[2].

Does the average cost of life insurance vary between smokers and non-smokers?

Yes, smoking is a factor that can increase the price that you pay for life insurance. Therefore, there's a difference in the average cost of premiums between smokers and non-smokers.

For non-smokers, the average cost of life insurance in 2025 was £32.31. This is compared to £34.73 for those who smoke.

The table below shows how the price for smokers has differed to non-smokers in previous years:

YearAverage cost for a smokerAverage cost for a non-smoker
2025£34.73£32.31
2024£35.65£34.76
2023£35.94£37.34
2022£36.15£38.31
2021£32.04£34.71
2020£32.29£32.38

While it may not seem like a big difference in price, the average sum assured taken out by smokers is much lower than non-smokers. 

In 2025, non-smokers took out an average sum assured of £112,221 while smokers took out an average of £88,384. This could suggest that smokers are taking out a smaller amount of cover to make costs more affordable.

Does a single life insurance policy cost the same as joint life insurance?

No, typically a joint policy is more expensive than one single policy. This is because two lives are covered under one policy.

In 2025, the average cost of a joint life insurance policy was £41.10, compared to £32.34 for a single policy.

Below shows the average price of joint life insurance in previous years:

Year

Average cost of joint life insurance

2025

£41.10

2024

£44.03

2023

£36.50

2022

£55.22

2021

£50.83

2020

£51.40

If two people (for example, a couple) were considering both taking out life insurance, a joint policy would typically be cheaper than taking out two single policies.

Using the examples above, it could cost £64.68 for two single policies compared to £41.10 for a joint policy.

It’s important to be aware that a joint life insurance policy only pays out once, usually upon the first death (if this happens during the policy term). Once a pay out has been made, the policy expires.

Exploring both options can help you to work out what’s best for your needs and budget.

What determines the cost of life insurance per month?

The cost of life insurance is calculated using your personal circumstances and the details of your policy.

You’ll pay for your policy in monthly instalments known as life insurance premiums.

The cost of life insurance is based on:

  • Age
  • Medical history
  • BMI (calculated using your height and weight)
  • Smoking status
  • Lifestyle (such as alcohol consumption and hobbies)
  • Policy type
  • Length of cover
  • Level of cover

These factors help insurers to assess your level of risk and the price you pay is calculated accordingly.

Below are some price examples. Quotes are based on a non-smoker, in good health, for a level term life insurance policy with a sum assured of £150,000.

Age Aviva Legal & General Scottish Widows
20£4.31£4.99£5.75
25£5.18£5.17£6.81
30£6.48£7.33£8.09
35£9.36£10.06£10.25
40£13.02£14.32£14.01
45£19.65£21.87£20.38
50£33.07£34.03£30.94

Comparing quotes helps you get a great deal on a policy. Why not use our fee free service for quotes from leading UK insurers?

What costs should you consider when taking out life insurance?

A life insurance pay out can help to cover many essential costs for your loved ones should the worst happen.

You might want to consider costs such as:

  • Mortgage debt – average mortgage debt is currently £197,811[3]
  • Household bills and utilities – annual average £2,793[4]
  • Childcare costs – average full-time childcare costs (20 hours per week) are £148.82 for children over 2 and £140.72 for children under 2[5]
  • Family living costs – it’s estimated that the average UK household budget is £37,267 per year[3]
  • Other outstanding debts – average credit card debt for UK households is £2,836[6]
  • Funeral costs – the average cost of a simple attended funeral is now £3,828[7]
  • An inheritance – a cash gift could be left to your loved ones to spend as they wish
Calculator

How much life insurance do you need?

Find out how much life insurance may be right for you by using our simple calculator. Fill in the costs you would like your policy to cover.

?

£121,687 is the estimated average outstanding mortgage per household in the UK.

Our property is generally the largest financial commitment any of us will make.

Your life insurance should cover this significant debt should you no longer be around.
£
?

According to Money Advice Service, full-time childcare in the UK now costs £242 a week.

The loss of a parent could result in the need for additional childcare whilst the surviving parent increases their hours to account for lost income.

Your life insurance cover should factor in this additional required outgoing.
£
?

The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.
£
?

You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.
£
?

According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.
£
?

If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.
£ -

Your total cover estimate

£ 0

Let us find you our best quote.

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Reassured top tips

How can I reduce the cost of life insurance?

  • Seize the day – the price of life insurance is generally cheaper the younger you are. You can secure your cheapest premiums while you’re young and in good health.
  • Choose the right policy type – you could save money by taking out term life insurance, rather than whole of life insurance.
  • Only take out what you need – the cost of your policy can be impacted by factors such as how long your cover lasts for and how much cover you take out. You can save money on a policy by working out exactly how much cover you need and how long you need it for.
  • Lead a healthy lifestyle – taking steps to lead a healthy lifestyle (for example, keeping your alcohol consumption to under 14 units per week and maintaining a healthy BMI) could help you to save money on your premiums.
  • Compare quotes – comparing quotes means you can get a variety of prices, allowing you to choose the option that’s most suitable for your needs and budget.

Get a great price on life insurance, compare quotes

While our article has highlighted what the average cost of life insurance is, this doesn’t mean this is the price that you’ll pay.

The cost of life insurance depends on your personal circumstances and your chosen policy details, meaning the cost of life insurance can vary significantly from one person to another.

Comparing quotes is the best way to get a great deal on your ideal policy.

Using our award-winning broker service, you can get quotes from trusted UK insurers such as Aviva, Legal & General, LV= and more.

We’ll present you with our best deals from our panel, saving you valuable time and money.

Quotes start from just £5 per month, so why not get in touch?

Fee-Free Quotes » Get a Great Deal

Other questions about life insurance:

What is life insurance?

Life insurance is a financial protection policy that pays out a lump sum if you pass away while the policy is active.

The pay out can help your loved ones to pay for essential living costs, as well as costs that arise as a result of your passing (such as your funeral).

It means that your family don’t have to make substantial changes to their lifestyle during a period of grief.

What life insurance policies are there? 

There are different life insurance policies, each suited to protecting different costs:

  • Level term life insurance – level term life insurance protects you for a set term (for example, 30 years) and pays out if you pass away during this time. Your cover amount will remain the same throughout the duration of the policy. It’s a great option for protecting large costs such as a mortgage and/or family living costs.
  • Decreasing term life insurance – decreasing term life insurance protects you for a set term and pays out if you pass away during this time. Your cover amount will decrease over time, often reducing at the same rate as a repayment mortgage. For this reason, it’s ideal for protecting this cost.
  • Whole of life insurance – whole of life insurance protects you for the rest of your life, paying out when you pass away (not if you pass away). It’s commonly used to help with funeral costs or inheritance tax bills (when the policy is written in trust).
  • Over 50s life insurance – over 50s life insurance guarantees acceptance to UK residents aged 50 – 85. It’s a popular option for those in this age bracket with poor health as you won’t need to give any medical information. The pay out could help to cover funeral costs or provide a small inheritance for your loved ones.

What is the average life insurance pay out?

According to the Association of British Insurers (ABI) the average life insurance pay out in 2025 was £83,892[8]

Sources:

The average price data used in this article has been gathered from our internal sales data and is the average price of all term life insurance policies (both level and decreasing term), unless stated otherwise, sold to all applicable customers over a 12 month period. Data is correct as of 06/10/26.

[1] https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/genderpaygapintheuk/2025

[2] https://www.investopedia.com/average-credit-scores-by-gender-5214525

[3] https://www.clearscore.com/learn/credit-cards/average-household-debt-uk

[4] https://www.clearscore.com/learn/managing-money/average-uk-household-budget

[5] https://www.moneyhelper.org.uk/en/family-and-care/becoming-a-parent/childcare-costs

[6] https://www.moneysupermarket.com/credit-cards/credit-card-statistics/

[7] https://www.sunlife.co.uk/over-50-life-insurance/funeral-costs/

[8] https://www.abi.org.uk/media-hub/news-post/protection-insurers-pay-out-7-84-billion-to-help-customers-safeguard-their-finances

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