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

What is the life insurance calculator?

Our calculator is your first step on the path to a life insurance quote that meets your needs. You’ll just need to answer four short questions, and we’ll work out the minimum amount of cover you may need to make sure your loved ones are looked after financially if the worst happens (based on your individual circumstances).

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How does the life insurance calculator work? 

We simply ask you to provide: 

  • 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, which would pay out if you die  

Once we’ve got these details, you’ll be halfway to a more tailored quote for life insurance that could ensure the financial security of the people you care about most.

How much life insurance cover do you need? 

That’s a difficult question, because while it’s crucial that your life insurance premium is high enough to meet your family’s needs in the future, you don’t want to fork out for a costly premium that’s higher than it needs to be. 

Here are some of the things you may want your life insurance policy to pay towards:

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

Consider all these potential costs and decide on an amount of cover that will offer the support your loved ones will need, after you’re gone. 

Our life insurance hub has a wide range of information that will 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 your insurance; and full details on all of the different types of life insurance available.

What’s the average cost of life insurance? 

According to Comparethemarket data, the average cost of life insurance is £16.69 per month[1]

However, the amount you’ll need to pay for life insurance will depend on a number of factors. Things that you, and your insurance provider, will need to consider include your: 

  • Age – the younger you start, 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 drink too much or 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 payout, 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 £16.69 per month for their life insurance for a 10-year term, up to £100k worth of cover and no critical illness cover in September, 2022.

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

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How can you lower the cost of your life insurance? 

If you’re looking for ways to cut the cost of your life insurance, there are several things you can do. Here are a few examples: 

  1. Consider the type of life insurance policy
    There are three main types of life insurance. Whole of life cover guarantees a payout, but it’s the most expensive. Level term life insurance pays out a fixed amount, but only for a fixed term (e.g. 20 years). Generally, decreasing term life insurance is the cheapest option, because the value of your payout depends on how long is left on your term. Because it’s value falls over time, it normally lowers the cost of your premiums.
  2. Consider a joint policy
    A joint life insurance policy covers you and another person (usually a couple). However, it only pays out once, leaving a lump sum payment to the survivor. This makes it cheaper than insuring you both individually.
  3. Get fitter
    Easier said than done at times, but getting in better shape and making certain lifestyle changes, like quitting smoking and drinking less alcohol, will improve your health and lower your risk with insurance providers, who could then offer cheaper cover.

What is a typical life insurance payout? 

A typical life insurance payout doesn’t really exist. That’s because, within reason, you can decide the level of cover you’re looking for. This means your payout could be as large or as little as your provider allows and you can afford. 

Also, the type of life insurance policy you hold impacts your payout. Whole of life or level term life insurance policies pay out a fixed, agreed sum upon your death, while a decreasing term life insurance policy will reduce its payout over time. With a decreasing term policy, each year that passes will see your potential payout reduce, until you either die or your policy expires.