As the benefits system in the UK expands ever further, there’s less incentive to get Life insurance than ever before. Leaving children a large sum of money over 16K would simply remove their entitlement to obtain benefits, so is it worth it? If you are childless and single, then pass away funeral costs are ultimately someone else’s problem and there’s always Crowdfunding for a partner who is left with card or other debts. That seems to be the modern attitude, looking at social media comments, but maybe it’s a valid point of view if you don’t have a mortgage?
Illness cover is another area where payouts would simply replace benefits for many people, so again, there’s no point unless you’re a mortgage holder.
Here’s some survey results from Confused.com;
With two-thirds of people in the UK (66%) claiming they don’t have a life insurance policy in place, queries have surged in 2025 and 2026, prompting life insurance experts at Confused.com to answer them directly.
“How much is life insurance?”, “Should I get life insurance in my 20s?”, and “Life insurance and critical illness” Google searches have increased by 40%, 200% and 250% respectively, over the last year(3). Giving a clear overview of the current life insurance landscape, Confused.com Life Insurance has created an in-depth report based on internal data analysis since 2020.
How much are people paying for life insurance?
In 2025 (according to the latest data), the average monthly life insurance premium in the UK was £27 across all age groups; however, the younger people buy a policy, the cheaper it tends to be. These lower prices are locked in and will only increase if you later change your policy details. The average monthly cost of a single life insurance policy for those aged 18-24 in 2025 was £12, making it the lowest price of any group. This compares to £48 for people over the age of 55, showing that planning ahead is important for keeping costs down.
In fact, younger age groups (18-24, 25-34 and 35-44) have all seen reduced annual premiums over the last five years, with cost reductions of -5%, -12% and -6% respectively. Inflation and the high health risks of COVID-19 have had a negative impact on older generations, particularly those with more assets and greater family coverage. In comparison, 45–54-year-olds and people over 55 have seen 13% and 38% increases in policy costs since 2020.
Currently, men pay more for life insurance than women, with an average of £340 annually compared to £309, due to factors such as potential differences in life expectancy and occupational risks.
How many people are opting for critical illness cover?
Currently, 20% of life insurance policies include critical illness cover, an 11% increase since 2020, highlighting the potential impact of the COVID pandemic on attitudes toward later-life planning. This change means more people can experience some reduction in stress if they have a covered illness, receiving funds to help cover their recovery and support their family when they would otherwise lose potential earnings.
1 in 5 (20%) women opted for critical illness cover in 2025, compared to 16% of men, whilst more than 1 in 10 (11%) 18–24-year-olds have included critical illness cover over the last five years. The Gen Z demographic is more forward-planning than those aged 55+, with just 2% including it on average since 2020.
Are joint policies becoming more popular?
In 2025, a single life insurance policy cost an average of £28, whereas a joint life insurance policy cost £26 on average. This has led more people to opt for a couple’s policy to save money. Although single policies have been the preferred cover (74%) over joint policies between 2020 and 2024, in 2025, those opting for a single policy have dropped by 63%. In fact, almost half (44%) of men chose a joint policy over a single one.
Currently, the average agreed “sum assured” (payout amount at the end of a life insurance policy) is £168,318. Having a safety net in place is essential for Brits’ peace of mind when it comes to loved ones and their futures. For further guidance on life insurance policies, Lee Davies, life insurance expert at Confused.com, has answered questions directly with policy tips:
1. When should people get life insurance?
Lee explains, “The younger you are, the cheaper life insurance premiums tend to be. So, it’s worth considering buying life insurance early, especially as you’ll pay a lower premium for the duration of the policy.”
2. Do I need life insurance?
Lee continues, “It’s always worth assessing your personal circumstances and asking whether you’d like to provide financial protection for your family. If you have key financial commitments, such as a mortgage, for example, a life insurance payout can help pay off any outstanding debts.
Consider whether your family may need a financial safety net should the worst happen. You can then look at the different types of life insurance to decide what policy suits your specific needs.”
3. What type of life insurance do I need?
Lee concludes, “The two main types of life insurance are term life and whole of life insurance. You can get increasing, decreasing, or level term life insurance. The amount of cover these policies offer can fluctuate over a fixed term, depending on the life insurance you buy. Whole of life insurance is different as it doesn’t include an end date and lasts for an entire lifetime. As long as you keep up your premium payments, a lump sum will be paid out to your beneficiaries when you die. However, payouts from whole life policies are usually much lower than those from a term policy.
There are other variations of life insurance, such as a joint policy (useful for couples), income protection (which isn’t a life policy, but will pay out in specific circumstances such as accident, sickness or unemployment when a person is unable to work), over 50’s life insurance and a term policy to cover a mortgage. These policies are tailored and can provide additional benefits based on your requirements. You can also add critical illness cover to your life insurance policy. It comes at an extra cost, but you’ll have the option to make an early claim on your policy if you’re diagnosed with a condition stated in your policy.”
For further insights and data on life insurance policies, visit Confused.com’s Life Insurance Report here: https://www.confused.com/life-insurance/life-insurance-report
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