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How much does life insurance cost on average?

As with any type of insurance, life insurance premiums vary a fair bit from person to person. A provider will take a look at a variety of different factors to establish how much of a risk you are before issuing a policy.

But it’s a good idea to know how much life insurance policies cost on average, so you can be better informed when searching for a plan, and not pay more than you need to. So, how much does life insurance cost in the UK?

While there will be slightly different criteria for different insurers, the factors that will affect how much you pay the most will be.

Your age

While your age on its own doesn’t give a snapshot of your health, it provides some indication of how likely you are to make a claim. So, if you want a cheap policy, then it’s best to get one early and lock in a good price.

Smoking

Unsurprisingly, whether or not you smoke is a big factor too. Cigarettes can cause a range of illnesses, from cancer to lung diseases, so naturally, they make you a higher risk. They are so bad for you, that smoking can cause your premiums to be up to four times more expensive than non-smokers.

Medical history/health

An insurer will want to know about any health scares or hereditary illnesses that run in your family. While some will take your word for it, others will want to take a look at your medical history. You don’t have to accept this, but in some cases, it will hamper your likelihood of being accepted.

Profession and lifestyle

How you spend your time and how you put food on the table will also be considered. For example, someone who sits behind a desk all day and doesn’t have any particularly remarkable hobbies will pay a lot less than someone who is a professional daredevil.

Your term length

When you're taking out life insurance, you need to pick a term length, which will dictate how long you are protected. If you opt for a shorter policy, then you will pay less, as there is a lower chance of you making a claim.

Level of cover

Some people need a higher payout than others. This could depend on how many dependents you have, the size of your mortgage, or just the level of protection that you feel comfortable with. Naturally, the higher you want your payout to be, the more your monthly fees will cost you.

So, what’s the average?

According to extensive research from insurance brokers Reassured, the average term-based life insurance premium was £38.15 over the past 12 months. However, some policies went as low as £5/month, while others can cost hundreds of pounds. 

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