A growing number of Brits are naming their ‘chosen family’ rather than blood relatives as beneficiaries of their life insurance.
We surveyed 2,000 UK adults in January 2026 to understand how traditional assumptions around family, inheritance, and financial dependency are changing.
Our research found that one in eight people (12%) would name someone who isn’t a blood relative as a beneficiary of their life insurance policy.
Who we choose as life insurance beneficiaries
A growing number of people are including lifelong friends, mentees, and even charities as their life insurance beneficiaries.
Of those who named a non-blood beneficiary, unmarried partners were the most common inclusion, with 21% of respondents naming them on their policies, followed by lifelong friends and charities.
Most common non-blood beneficiaries | % of respondents |
Unmarried life partner | 21.21% |
Lifelong friend | 21.07% |
Charity or community cause | 14.65% |
Mentee or non-relative youth | 7.33% |
How we define family is changing
The definition of ‘family’ is widening to reflect modern living.
In the UK, there were 28.6 million recorded households in 2024, 8.4 million of which were made up of people living alone. Additionally, unmarried, cohabiting couples made up around 18% of all UK families.[1]
These demographic shifts are influencing financial dependency. Our study found that almost half (46%) of Brits believe their immediate family would be the most financially affected if they died unexpectedly, while one in seven believe their ‘chosen family’ would be the most affected.
Dr Daniel Glazer, Clinical Psychologist and family dynamic expert, says: ‘Financial planning, naming beneficiaries, and safeguarding long-term protection all underscore who means most to us.
'By naming a friend or partner, we are aligning our formal arrangements with the emotional reality of our daily lives. Many legal and financial systems are still set up for narrow definitions of family, so people have to be more intentional about making sure their chosen relationships are protected.’
The rise of the charitable legacies
It isn’t just individuals seeing the effects of this shift. UK charities saw a record £4.5bn in legacy income in 2024.[2]
Around 145,000 people left a gift to charity in their will last year, a 15% increase from the previous year.
Among those aged 40 and over who have a will, almost one in three have included a charity. This trend is particularly strong among those without children, with nearly half (47%) choosing to include a cause in their legacy planning.[3]
When to review your life insurance beneficiaries
To help navigate these changes, we’ve identified four key triggers that should prompt a review of your life insurance policy.
If you’re the policy owner, you can typically change your nominated beneficiary, or beneficiaries, at any point before a claim. However, if your policy is held in a trust, such as an 'absolute trust', these choices may be fixed, so it is important to check your specific policy terms.
1. Relationship changes
If you have separated or divorced from a partner, ensure your beneficiaries reflect your current situation; divorce does not automatically remove an ex-spouse as a beneficiary on a life insurance policy.
Equally, if you have moved in with a new partner, it is important to remember that cohabiting couples don't have the same automatic inheritance rights as married couples, so you may want to name them specifically to ensure they are protected.
2. Modern parenting
Legal defaults may not automatically include step-children or reflect complex care arrangements.
If you are a step-parent or a legal guardian, it may be worth reviewing your beneficiaries to ensure financial support is correctly directed.
Placing a policy ‘in trust’ will ensure that the money provides for a child’s upbringing exactly as you intended.
3. Shared financial responsibilities
If you share a mortgage or significant household bills with a friend or sibling, you may want to grant them the protection of a life insurance pay-out.
In many shared living arrangements, the loss of one income could make keeping up with bills or mortgage repayments more challenging.
4. Charitable Interests
If a particular cause has become important to you, you can name a registered charity as a beneficiary. Choosing to leave either a fixed sum or a percentage of your pay-out is a straightforward way to support a cause.
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What our expert says...
‘Life insurance should reflect your real-life dynamics, not just a legal definition of a family tree. Whether it’s a partner you aren't married to, a close friend, or a cause you care about, your policy should protect the people who matter most to you.
‘To ensure these nominations are legally binding and your wishes are met, it’s worth considering writing your policy ‘in trust’. A trust is a legal arrangement that allows you to leave assets to your chosen beneficiaries.
‘Writing your life insurance in trust also means the proceeds from your policy aren’t counted as part of your estate when you die. As such, they won’t be subject to inheritance tax.
‘For unmarried couples, who, unlike married couples or those in a civil partnership, aren’t exempt from inheritance tax, writing your insurance policy in trust is a way to financially protect your partner when you die if they are your chosen beneficiary.’