A new report by Confused.com Life Insurance has revealed that average premiums costs have increased by 38% in the last five years for those aged over 55, while costs have dropped by 12% for those aged between 25 and 34.
A recent poll by Confused.com found that two-thirds of people in the UK (66%) claim they don’t have a life insurance policy in place, while the questions "How much is life insurance?", "Should I get life insurance in my 20s?", and "Life insurance and critical illness" have increased in Google searches by 40%, 200% and 250% respectively, over the last year.
According to the latest data, the average monthly life insurance premium in 2025 was £27 across all age groups in the UK; however, the younger people buy a policy, the cheaper it tends to be.
These lower prices are locked in and will only increase if a person later changes their policy details. The average monthly cost of a single life insurance policy for those aged 18-24 in 2025 was £12, making it the lowest price of any group.
In fact, younger age groups (18-24, 25-34 and 35-44) have all seen reduced annual premiums over the last five years, with cost reductions of -5%, -12% and -6% respectively. Inflation and the high health risks of COVID-19 have had a negative impact on older generations, particularly those with more assets and greater family coverage.
The report also found that men currently pay more for life insurance than women, with an average of £340 annually compared to £309, due to factors such as potential differences in life expectancy and occupational risks. Furthermore, 20% of life insurance policies include critical illness cover, an 11% increase since 2020, highlighting the potential impact of the COVID pandemic on attitudes toward later-life planning.
1 in 5 women opted for critical illness cover in 2025, compared to 16% of men, while more than 1 in 10 18–24-year-olds have included critical illness cover over the last five years, compared to just 2% of those aged 55+.
In 2025, a single life insurance policy cost an average of £28, whereas a joint life insurance policy cost £26 on average. This has led more people to opt for a couple’s policy to save money. Although single policies have been the preferred cover (74%) over joint policies between 2020 and 2024, in 2025, those opting for a single policy have dropped by 63%. In fact, almost half (44%) of men chose a joint policy over a single one.
Currently, the average agreed 'sum assured' (payout amount at the end of a life insurance policy) is £168,318.
"The younger you are, the cheaper life insurance premiums tend to be. So, it’s worth considering buying life insurance early, especially as you’ll pay a lower premium for the duration of the policy," Lee Davies, life insurance expert at Confused.com, said.
