7 things that cost more than your life insurance premiums

Nearly a third of people aged 18 to 40 say they can't afford to take out a life insurance policy.

That's according to life insurance provider Beagle Street, which surveyed 2,000 adults in July. Almost half said they did not have a policy; a further one in five said they had no extra money to spend on a policy due to the cost of living crisis. 

Unlike car insurance, life insurance is not a legal requirement, so there's little to stop you not having cover. But going without life insurance could cost you and your family dearly in the long run.

Here Which?, examines how much life insurance actually costs, what it protects – and what you could cut out instead.

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How much does life insurance actually cost?

The average amount paid for life insurance is £38.15 per month, according to life insurance broker Reassured.

It calculated this average cost from 142,576 term life insurance policies, sold between September 2021 and 2022, with an average cover amount of £151,972.

But even that figure may be overstating what you'd pay. Your life insurance premium is calculated based on you age, your health (any pre-existing medical conditions such as diabetes) and your lifestyle (alcohol consumption, smoking and any dangerous leisure activities). 

If you are a 30-year-old non-smoker with no health conditions you could be paying considerably less each month. 

• Find out more: what is term life insurance? 

7 things that cost more than a life insurance premium

Taking the £38.15 paid for a life insurance policy, this averages out at £9.54 a week. 

Here are seven weekly things that cost you more: 

1. M&S Gastropub meal deal for two: £12
2. An espresso martini: £10.25
3. Bloom & Wild flower subscription: £12.50
4. Pret chicken salad sandwich, bag of salted crisps and Diet Coke: £9.60
5. Cinema ticket: £10
6. Oddbox extra small fruit and veg box: £11.49
7. Monday, Wednesday, Friday and Saturday copies of The Daily Telegraph: £12

While it can be hard to part with your cash without the instant gratification of a delicious lunch or an Oscar-winning film, your life insurance cover will show up at your darkest times and help you in a way that a glass of wine simply can’t.

We're not saying you should cut out all the little luxuries – but it's worth drawing up a household budget before cancelling protections.

• Find out more: which insurance policies are worth keeping?

Do I need a life insurance policy?

It's a common misconception that those under the age of 40 don't need a life insurance policy. 

If you have people who are financially dependent on you such as a partner or children, or you own a house, a life insurance policy is a good idea. It means if you were to suddenly pass away, your loved ones would be looked after.

And some policies, such as critical illness insurance and family income benefit insurance, will pay some money to your family before you die. 

Read our guide on the different types of life insurance explained to find out what policy is best for you and your family. 

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