More people are looking for affordable life insurance – but what does it actually cost?

More people are searching for ‘affordable’ life insurance, as households look more closely at ways to protect their finances.

Comparison website MoneySuperMarket says searches for the term rose by 425% between December 2025 and February 2026, while overall life insurance searches are up 22% year on year.

To get a clearer picture of costs, Which? looked at how prices vary depending on your age, health and the type of policy you choose, along with ways to keep costs down.

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Why are more people searching for life insurance?

According to MoneySuperMarket, life insurance searches are up 22% year on year. 

One reason could be changes to inheritance tax rules, with plans to bring most unused pension pots into the scope of inheritance tax from April 2027, alongside the ongoing freeze to inheritance tax thresholds, including the £325,000 nil-rate band. 

But more searches don’t necessarily mean more people are buying cover. Separate research from MoneySuperMarket found that 46% of people without life insurance have never requested a quote, while among those who haven’t, 22% say they assume it would be too expensive. 

• Find out more: Best life insurance 2026

What is life insurance for and who needs it?

Life insurance is designed to provide a payout to your family or dependants if you die during the policy term, helping to cover essential costs or replace lost income.

It’s commonly used to help with:

• Mortgage payments: so your family can stay in your home.
• Day-to-day living costs: replacing lost income for a partner or children.
• Outstanding debts: such as loans or credit cards.
• Funeral expenses: these can run into thousands of pounds.

Not everyone will need life insurance. If you don’t have dependants, significant debts or financial commitments that would fall to someone else, cover may be less of a priority.

It’s also worth checking whether you already have some protection in place through your employer. Some workplace benefits include ‘death in service’ cover, which can provide a lump sum to your family if you die while employed.

• Find out more: 8 expensive mistakes to avoid when purchasing life insurance 

How much does life insurance cost?

Some policies start from as little as £2.64 a month, according to MoneySuperMarket.

However, this example is based on a very specific scenario: a single non-smoker aged under 30, with £100,000 of cover over a 10-year term with a decreasing term.

To give a more realistic comparison, Which? analysed sample quotes based on £200,000 of level-term cover over 25 years for a non-smoker. Using the average of the five cheapest quotes, monthly premiums were: 

The figures show how strongly price is driven by age, with costs rising significantly over time.

The type of policy also makes a difference. Level-term cover pays out a fixed amount, whereas decreasing-term cover - often used alongside a repayment mortgage - reduces over time and is typically cheaper. For example, a 31-year-old non-smoker would pay around £6.85 a month for decreasing-term cover, compared with £8.20 for level-term.

Health and lifestyle matter too. According to LifeSearch, a 41-year-old smoker could pay around £35.62 a month for level-term cover, compared with £16.20 for a non-smoker of the same age.

• Find out more: The different types of policy explained

What affects the price you pay?

Life insurance costs are based on a range of personal factors, but some have a much bigger impact than others.

Key factors include:

• Your age: The older you are when you take out a policy, the more likely you are to claim during the term, which increases the cost.
• Your health and lifestyle: Smokers typically pay more than non-smokers, and pre-existing medical conditions can push premiums higher.
• The type of policy: Level-term cover pays out a fixed amount, whereas decreasing-term cover reduces over time and is usually cheaper as a result.
• The level of cover and term length: higher payouts and longer policies increase the insurer’s risk, which is reflected in the price.

6 ways to keep life insurance costs down

If you’re concerned about affordability, there are ways to make cover cheaper without cutting it altogether:

1. Take out cover sooner rather than later: Premiums rise with age. For example, our table shows that a £200,000 level-term policy over 25 years costs around £6 a month at age 23, compared with more than £40 at age 51.
2. Only cover what you need: You don’t have to match average cover levels. Many people reduce the payout amount to keep monthly costs manageable, especially as premiums rise with age.
3. Consider decreasing term cover: This type of policy reduces over time and is often used to cover a repayment mortgage. It can be a lot cheaper than level term for the same starting amount.
4. Choose a shorter term if appropriate: A policy that runs for 20 years will usually cost less than one lasting 30 years, as the insurer is covering you for a shorter period.
5. Compare quotes across providers: Prices vary between insurers, so it’s worth shopping around to find the cheapest option for your circumstances. 
6. Avoid smoking: Smoking can significantly increase premiums. According to LifeSearch, a 41-year-old smoker could pay roughly twice as much as a non-smoker. It’s important to be honest about your smoking status when applying, as failing to disclose this could invalidate your policy later on.

Find out more: Over-50s life insurance: is it worth getting?