The cost of life insurance would be different for everyone as it depends on various factors that are unique such as age, lifestyle, and health. But it is the most affordable way to secure what matters in your life with the most little as £5 per month.
When you buy life insurance the type of coverage that pays out a lump sum amount if you get died. This is a long-term financial commitment. But you must remember that you must afford the ongoing monthly payments.
The most important thing is the cost of life insurance is more variable’ so you need to do deep research on if the monthly payments are affordable or not.
The payments will go up with the age. But some other factors should also be considered while calculating the cost of life insurance.
In this article, we are going to cover up what is the average cost of life insurance, what is the life insurance cost in the UK, and the life insurance rates according to the age chart.
So, you can go through the whole article for gaining some information.
The average cost of life insurance
The average cost of life insurance will vary depending on various factors. But according to some reports, the average cost of life insurance in the UK is £37.23.
When you are looking for the best life insurance policy but don’t have the proper idea of what it means, then asking what the average cost of life insurance is a reasonable question.
The following table will show you how the average cost of life insurance will differ:
The average cost of life insurance
- Women: £31.30
- Joint policy: £46.23
- Smoker: £40.34
- Nonsmoker: £38.53
- Level term: £38.23
- Decreasing term: £38.07
- The whole of life: £178.30
- Over 50s plan: £29.65
- Men: £44.85
The sum assured of the policies will vary depending upon several factors. It is the average cost for all policies.
What determines the cost of life insurance in the UK per month?
The cost of life insurance is calculated using your circumstances and the category of your chosen policy.
The factors that have a greater impact on the premium of your policies are:
- Age: it is very known to everyone that the more you will be older the premium will be higher. It is the general rule of all policies.
- Medical history: you have to inform them about any medical issues you were suffering in the past including your family medical history will be asked. If you had preexisting medical issues then the premium may be increased.
- Health and well-being: you will be asked about any health issues you are suffering from at present including your physical and mental conditions. Depending on the medical conditions the premium will be increased.
- BMI/weight: if your weight or BMI is not in a healthy state then you may be likely to pay an increased amount of premium. As your health condition includes certain medical complications.
- Smoking status: if you are a smoker then you may be likely to pay an increased amount of premium as there are risk of medical complications.
- Occupation: if you are in an occupation that is considered high risk then you need to pay more premium than others.
- Length of the policy: a longer-term policy results in a more expensive premium.
- Level of cover: the more you will like to pay to your family the higher would be the range of premium.
How much does life insurance cost in the UK?
When you buy a life insurance policy then the type of coverage that pays out a lump sum amount to your family after you die. It is a long-term financial investment. But the cost of life insurance is dependent upon various factors.
The cost of life insurance also depends on your circumstances and what kind of coverage you wish to buy.
Here, I am preparing a table that shows the monthly premium for £100,000 of life insurance for 20 years and a 30-year term of level-term life insurance.
£100,000 life insurance cost for smokers:
| Age | 20-year level term insurance | 30-year level term insurance | Mortgage life insurance | The whole of life assurance |
| 30 | £6.41 | £8.35 | £5.99 | £94.60 |
| 35 | £9.04 | £12.62 | £8.08 | £106.64 |
| 40 | £14.03 | £19.92 | £12.51 | £126.54 |
| 45 | £23.17 | £33.32 | £20.73 | £159.74 |
| 50 | £37.56 | £54.73 | £39.08 | £186.70 |
£100,000 life insurance cost for nonsmokers:
| Age | 20-year level term insurance | 30-year level term insurance | Mortgage life insurance | The whole of life assurance |
| 30 | £3.88 | £4.76 | £4.16 | £72.19 |
| 35 | £5.02 | £6.78 | £5.08 | £86.26 |
| 40 | £7.53 | £9.70 | £6.61 | £104.95 |
| 45 | £9.90 | £13.68 | £9.06 | £120.35 |
| 50 | £15.00 | £14.12 | £14.12 | £128.61 |
When is the perfect time to buy life insurance?
There is no such unique, fixed time to buy a life insurance plan, it depends upon your circumstances. But there are a few factors that you need to keep in mind while buying a life insurance plan.
- You need to consider whether there is any dependent who will suffer financially if you died. If it is then you must go for the plan ensuring your dependent can continue living comfortably after you died.
- Another factor you need to consider is your health and age. The younger and healthier you are the cheaper premium it will be. The older and sick you are the premium will be more costly. So if you are younger and healthy it will be better to buy a life insurance policy earlier than later.
- On the other hand, if you are unhealthy and older then you might not be able to get the quality of life insurance. So you need to find other financial resources for your family other than life insurance.
So the best time to buy life insurance is when you feel it is essential and at the time when you can afford the premium of the policy.
Average life insurance cost per month UK tables
We are going to prepare an average life insurance cost per month UK table that gives you a proper indication of costs for the term, level, and decreasing term life insurance policies.
| Your age | Level-term life insurance | Decreasing term life insurance |
| 20 | £4.55 | £4.71 |
| 25 | £5.28 | £4.99 |
| 30 | £5.84 | £5.18 |
| 35 | £7.92 | £6.08 |
| 40 | £11.42 | £7.97 |
| 45 | £17.37 | £10.89 |
| 50 | £28.82 | £17.11 |
FAQ:
Is it worth getting life insurance in the UK?
Ans: if your children, your spouse, and other family members of your family depend on you financially then you need life insurance. Getting life insurance would be worth it to provide your family with financial support in case of your death.
How is the cost of life insurance calculated?
Ans: The primary unit for calculating the cost of life insurance is the rate per thousand which can vary depending on various factors such as your age, health conditions, gender, occupation, etc.
Wrap up:
The mentioned average cost of life insurance that I have shown in the table is from a wide range of customers. It is possible to lower your premium level depending on your circumstances.
There are various life insurance plans are available in the market from different companies, starting from just £5. You need to look for the most affordable deal that suits you the best.
