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Life insurance calculator

Find out how much cover you need

Not sure where to start?
Give our friendly team at Lifesearch a call.

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0800 072 1147

How much life insurance cover do I need?

The amount of cover you need depends on what you want your life insurance policy to pay towards. That could include:

  • The cost of a mortgage or rent
  • Living expenses for your family
  • Your children’s future (including childcare and education)
  • Any outstanding debts
  • Funeral costs.

Consider all these potential costs to decide on an amount of cover that will offer the support your loved ones will need after you’re gone. While it’s crucial that your life insurance pay-out is enough to meet your family’s needs, you don’t want to fork out for a costly premium that’s higher than it has to be.

Use our calculator to work out how much cover you need and see how much your policy could cost.

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How does the life insurance calculator work?

Our calculator can give you an idea of how much life insurance you might need in a matter of minutes. When using our life insurance cost calculator, we ask you:

  • How much you’d like to leave to your dependants
  • The balance on your outstanding mortgage, if you have one
  • Any future costs, such as credit card payments or funeral expenses
  • Details of any existing life cover you have that would pay out if you die.

This is how life insurance premiums are calculated. Once we have these details, we’ll show you the total amount of cover you might need, based on the information you’ve provided.

You can then opt to get advice from our partners at LifeSearch. Alternatively, if you don’t feel you need advice, we’ll show you quotes from a list of providers that fit your criteria.

Remember, our life insurance calculator is just for guidance. You’ll have to choose the type of policy that’s right for your needs, and other factors may also affect your premium.

How much does life insurance cost?

According to Compare the Market data, the average cost of life insurance is £8.39 per month[1].

However, the amount you’ll need to pay for life insurance will depend on a number of factors, including your:

  • Age – the younger you take out life cover, the lower your monthly payments could be.
  • Weight – if you’re in better shape, you’re less of a risk and could benefit from cheaper premiums.
  • Lifestyle – if you smoke, you’ll likely pay more for life insurance.
  • Family history – if you’re at a higher risk of hereditary disease, you could pay more for cover.
  • The amount of cover – if you want a bigger pay-out, you’ll need to pay more each month.
  • The type of policy – prices differ between whole of life, level term and decreasing term life insurance.

[1] 51% of our customers were quoted less than £8.39 per month/year for their life insurance for a 10-year term, up to £175k worth of cover and no critical illness cover in December 2023.

To find out how much cover you might need, start a calculation now.

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How can I lower the cost of life insurance?

If you’re looking for ways to help cut the cost of your life insurance, there are several things you can do:

  1. Consider the type of life insurance policy
    There are three main types of life insurance:
  2. Consider a joint policy
    A joint life insurance policy covers you and another person (usually a couple). However, it only pays out once, typically a lump sum payment to the survivor. When the policy ends, the survivor has no further life insurance.
  3. Get fitter
    Getting in better shape and making certain lifestyle changes, like quitting smoking, will improve your health. This could lower your risk with insurance providers, who might then offer cheaper cover.

What is a typical life insurance pay-out?

The average life insurance payout in 2022 was £73,578, according to the Association of British Insurers (ABI).

But a typical life insurance pay-out doesn’t really exist. That’s because, within reason, you can decide the level of cover you would like. This means your pay-out could be as large or small as your provider allows and you can afford.

The type of life insurance policy you choose also impacts your pay-out.

Life insurance explained

Our life insurance guides offer a wide range of information that can help cut through the jargon of this tricky subject. You can find more on:

  • What age might be best to take out a life insurance policy
  • How you might be able to reduce the cost of life insurance
  • Details on the different types of life insurance available.

frequently asked questions

Is there an over-60 life insurance calculator?

There isn’t a life insurance calculator specifically for over-60s. When you use a life insurance calculator, you’ll be asked your date of birth. Your age is one of the factors life insurance providers use to calculate the cost of insuring you.

The older you are, the more you’re likely to pay for your premium as you’re considered more of a risk to insure.

Is there a specific mortgage life insurance calculator?

There isn’t a specific mortgage life insurance calculator. When you use our life insurance calculator, you’ll be asked if you want cover for your mortgage, along with how much of your mortgage is outstanding.

The calculator can give you an idea of how much cover you’d need if you’re looking for mortgage life insurance to help your family pay off your mortgage if you die.

What about a cash value life insurance calculator?

This is something you might want if you have whole of life insurance. Some plans are linked to an investment, which you can cash in while you’re still alive.

Unfortunately, there isn’t a simple way to calculate the cash value of a whole of life policy. The best idea is to speak to your insurance provider about how much cash value your life insurance has accrued.

Page last reviewed on 16 JANUARY 2024
by Helen Phipps