Brits overestimate price of life insurance by 184% – how much does it really cost?

Many UK adults are wildly overestimating the cost of life insurance and risking leaving their families financially vulnerable by delaying coverage until key life events, according to new research.

Cost is the biggest barrier to people taking out life insurance, research by life cover provider Legal & General (L&G) found in its study of 2,000 adults. More than a quarter (27%) of those asked said they believed life insurance was “too expensive”.

Yet on average, people overestimate the monthly cost of life insurance by 184%, the survey found – believing it to be £79.50 a month when the actual average L&G policy cost was £27.95 in 2024.

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Policies from other providers could cost more or less. According to Compare the Market data, the average cost of life insurance per month is £17.07, based on data from September 2025.

James Shattock, managing director UK protection at L&G, said: “There is a significant perception gap when it comes to life insurance. It’s a core part of financial wellbeing for anyone with dependents and is often far more affordable than people realise.

“Starting a policy early can mean lower premiums and stronger protection, while delaying coverage leaves families exposed to unexpected financial pressures.”

Concern about cost was particularly high among adults aged 45 to 54. But even younger adults, aged 18 to 24, who actively review their personal finances an average of 35 times a year, had a similar perception.

When those polled were asked what might persuade them to purchase life insurance, 35% cited “lower monthly cost,” with those in Wales much more likely to be persuaded by lower costs.

We look at the five insurance policies you should have in a separate article.

When should I get life insurance?

Misconceptions about the cost of life insurance are contributing to delays in people taking out policies, the L&G study found, as they wait until they believe they are more financially settled before getting a policy.

Previous L&G research in 2024 highlighted this trend, showing 6.5 million UK adults are postponing financial products, such as life insurance, until they reach key life milestones like buying a home, getting married, or starting a family.

Although, these events are occurring later than in previous generations, or not at all, due to personal choice or other circumstances, leaving people exposed.

For example, spending years living together first means marriages are happening later. In 2023, the average age of marriage for opposite sex couples was 34.8 for men and 33 for women, according to Office for National Statistics (ONS) data. Among those born in 1983, half of women were married by age 35 and half of men by 40. A decade earlier those ages were 31 and 35 respectively.

Broader societal patterns reinforce this behaviour: in 2025, fertility rates in England and Wales reached record lows, the Guardian reported, the median age for a first marriage is approximately 31, and the average first-time homebuyer in England is 34.

The benefits of getting life insurance early

1. It’s usually cheaper

The main benefit of getting life insurance when you are younger is that it is highly likely to be much cheaper than if you get it when you are older. You get to lock in lower premiums because younger, healthier individuals often pay significantly less for coverage.

2. Protection against an early death

Taking out a policy early can also mean you ensure dependents are financially secure in the event of an untimely death.

3. Provide peace of mind

Life insurance removes uncertainty, allowing those with it to focus on long-term financial goals like pensions and investments, knowing the foundations are covered.

4. Cover unexpected costs

From mortgage payments to childcare or funeral expenses, life insurance can prevent loved ones from inheriting debt.