A new study by Legal & General (L&G) has revealed a striking gap between public perception and reality when it comes to the cost of life insurance. While many believe cover costs around £79 a month, the true average premium in 2024 was just £27.95 — with healthy individuals under 50 paying as little as £5 per month.
Despite being one of the more affordable insurance products, life cover continues to suffer from a reputation problem — often viewed as unnecessary or dull. Experts suggest that the UK’s social safety net, combined with misconceptions about cost, may contribute to the low uptake of policies, particularly among younger adults.
Public Misjudges True Costs
The L&G survey found that men estimate the cost of life insurance to be higher (£92.08/month) than women (£67.57/month). The 25–34 age group overestimated the most, guessing an average of £97.96/month — nearly four times the true cost for many consumers.
This misjudgment has real consequences. “People are delaying protection because they assume it’s unaffordable,” said an L&G spokesperson. “But in many cases, the cost of waiting could be far greater than the cost of cover.”
Why People Buy – and Delay – Life Insurance
The research shows that younger adults without children often take out life insurance primarily to protect a partner (37%), rather than for income protection following illness (22%). However, payouts can also provide essential financial support for aging parents, siblings, or dependants, highlighting the broader importance of coverage.
L&G also found that 6.5 million UK adults are postponing financial products like life insurance until major life events — such as marriage, buying a home, or having children. But with these milestones happening later than ever, millions may be leaving themselves financially exposed.
Average age for first-time buyers: 34
Median age for first marriage: 31
Fertility rate in England and Wales (2025): Lowest since 1938
Regional and Economic Factors
In regional comparisons, Brighton residents were the most price-conscious, with 52% saying life insurance is “too expensive.” Nationally, those aged 45–54 were the most likely to cite cost as the biggest barrier (33%).
Across all respondents, 35% said a lower monthly premium would encourage them to buy. In London, nearly a quarter (23%) said buying a home was the moment they decided to take out cover — often because it’s a condition for obtaining a mortgage.
Real-Time Health Data Snapshot (2025)
Average monthly health insurance premium (UK, 2025): £34.10
Average BMI of UK adults: 27.6 (classified as overweight)
Top three health conditions increasing life cover costs: Hypertension, Type 2 diabetes, and smoking-related illnesses
Estimated reduction in premium for non-smokers: Up to 50%
Healthy habits continue to play a significant role in reducing premiums. For example, a 35-year-old non-smoker in good health could pay as little as £6–£10 per month for £100,000 in cover.
Health and Financial Advice
Financial advisers recommend reviewing life cover every few years or after major life changes. Meanwhile, maintaining good health — including regular exercise, balanced diet, and annual medical check-ups — not only improves life expectancy but can also cut insurance costs dramatically.
Experts suggest pairing life insurance with proactive health management, such as digital health apps that track heart rate, sleep, and blood pressure. Some insurers even offer discounts for verified health data through wearable devices, rewarding long-term wellness.
Conclusion
Legal & General’s research underscores a key message: life insurance is far more affordable than most Britons think. With premiums starting under £10 a month for many healthy adults, delaying cover due to misconceptions could be a costly mistake — both financially and for loved ones left unprotected.
