More people are looking for affordable life insurance – but what does it actually cost?

More people are looking for affordable life insurance – but what does it actually cost?

UK households are searching for cheaper life insurance as costs rise with age and health factors. This guide explains real price ranges, key cost drivers and practical ways to reduce premiums.

What's happening

More people are looking for affordable life insurance – but what does it actually cost? According to MoneySuperMarket, searches for the term rose by 425% between December 2025 and February 2026, while overall life insurance searches are up 22% year on year. The increase follows changes to inheritance tax rules that will bring most unused pension pots into the scope of inheritance tax from April 2027, alongside the ongoing freeze to inheritance tax thresholds including the £325,000 nil-rate band.

Why it matters

Life insurance is designed to provide a payout to your family or dependants if you die during the policy term, helping to cover essential costs or replace lost income. It is commonly used to help with:

• Mortgage payments: so your family can stay in your home.
• Day-to-day living costs: replacing lost income for a partner or children.
• Outstanding debts: such as loans or credit cards.
• Funeral expenses: these can run into thousands of pounds.

Not everyone needs life insurance. If you don’t have dependants, significant debts or financial commitments that would fall to someone else, cover may be less of a priority. It is also worth checking whether you already have some protection in place through your employer, as some workplace benefits include ‘death in service’ cover.

Who is affected

The cost you pay depends on your health and the type of cover you choose. Some policies start from as little as £2.64 a month, according to MoneySuperMarket, but this example is based on a very specific scenario: a single non-smoker aged under 30, with £100,000 of cover over a 10-year term with a decreasing term.

For a more realistic comparison, Which? analysed sample quotes based on £200,000 of level-term cover over 25 years for a non-smoker. Using the average of the five cheapest quotes, monthly premiums were:

Quotes were sourced via LifeSearch using Iress data and obtained in April 2026. The figures show how strongly price is driven by age, with costs rising significantly over time. The type of policy also makes a difference. Level-term cover pays out a fixed amount, whereas decreasing-term cover – often used alongside a repayment mortgage – reduces over time and is typically cheaper.

Health and lifestyle matter too. According to LifeSearch, a 41-year-old smoker could pay around £35.62 a month for level-term cover, compared with £16.20 for a non-smoker of the same age.

What to do next

If you are concerned about affordability, there are ways to make cover cheaper without cutting it altogether:

• Take out cover sooner rather than later: premiums rise with age. For example, our table shows that a £200,000 level-term policy over 25 years costs around £6 a month at age 23, compared with more than £40 at age 51.
• Only cover what you need: many people reduce the payout amount to keep monthly costs manageable, especially as premiums rise with age.
• Consider decreasing term cover: this type of policy reduces over time and is often used to cover a repayment mortgage. It can be a lot cheaper than level term for the same starting amount.
• Choose a shorter term if appropriate: a policy that runs for 20 years will usually cost less than one lasting 30 years.
• Compare quotes across providers: prices vary between insurers, so it is worth shopping around to find the cheapest option for your circumstances.
• Avoid smoking: smoking can significantly increase premiums. According to LifeSearch, a 41-year-old smoker could pay roughly twice as much as a non-smoker. It is important to be honest about your smoking status when applying, as failing to disclose this could invalidate your policy later on.

Sources

More people are looking for affordable life insurance – but what does it actually cost? – Which?

Key facts

• Life insurance searches are up 22% year on year according to MoneySuperMarket.
• 46% of people without life insurance have never requested a quote.
• 22% of those who haven’t requested a quote assume it would be too expensive.
• Premiums can start from £2.64 a month for a very specific young non-smoker scenario.
• A 41-year-old smoker may pay roughly double the premium of a non-smoker of the same age.

Key entities

• MoneySuperMarket: comparison website that reported search trends.
• Which?: consumer organisation that analysed sample quotes.
• LifeSearch: provider used to source quotes via Iress data.
• Guardian, Legal & General, Zurich, Scottish Widows, Royal London, Aviva and Vitality Life: insurers included in the quote analysis.

Comparison and alternatives

When choosing a policy, the main alternatives are level-term and decreasing-term cover. Level-term provides a fixed payout, while decreasing-term reduces over time and is usually cheaper. The best option depends on your financial commitments, such as a mortgage, and how long you need coverage.

FAQs

Q: What is the cheapest life insurance option? A: Policies can start from as little as £2.64 a month, but this applies only to a very specific scenario of a young non-smoker with a small cover amount over a short term.

Q: How much does age affect life insurance cost? A: Premiums rise sharply with age; a 23-year-old may pay around £6 per month for a £200,000 policy, while a 61-year-old could pay over £120.

Q: Does smoking significantly increase premiums? A: Yes. A 41-year-old smoker could pay around £35.62 per month for level-term cover, compared with £16.20 for a non-smoker of the same age.