Did you know? Many UK adults significantly overestimate how much life insurance really costs.
Did you know? Many UK adults significantly overestimate how much life insurance really costs.
Recent research from Legal & General (L&G) found that people believe a typical life insurance policy costs around £79.50 per month. In reality, the average policy in 2024 was just £27.95 per month. That means most people are overestimating the cost of cover by 184%!
This shows that many people may be avoiding life insurance because of misconceptions about price, rather than the actual cost.
Why do people think life insurance is expensive?
The L&G report found that 27% of adults consider the cost of life insurance a barrier. But if more people knew the true cost, they might feel much more confident about taking out life cover.
Price perceptions also vary by age and location:
- Adults aged 45-54 were the most concerned about cost.
- Young adults (18–24) also thought life insurance was expensive, even though this group is actively reviewing their finances, on average 35 times a year.
- Motivation can be a barrier too: 24% of younger adults don’t plan to take out life cover, while 13% say they simply haven’t had the time to look into it.
Life insurance isn’t just for big life events
Many people wait for major milestones such as; buying a house, getting married or having children, before even thinking about protection . But life insurance can be important even if you rent, support a partner, parent or other dependents financially.
Ask yourself:
- How would your household keep up with rent or mortgage payments if something happened to you?
- Do you have dependents who rely on your income?
Getting life insurance now can offer peace of mind and may even save you money, as premiums are usually cheaper when you’re younger.
Don’t put it off
Life insurance isn’t just about money, it’s about protecting your loved ones and giving yourself peace of mind. Many adults put it off because of cost concerns or procrastination, but knowing the true cost could make taking out cover much more achievable.
We can help you find a policy that fits your budget while making sure your loved ones are financially protected.
As with all insurance policies, terms, conditions, and exclusions apply. Your home may be repossessed if you do not keep up repayments on your mortgage.
Source:
https://protectionreporter.co.uk/uk-adults-overestimate-life-insurance-costs-by-184.html
