Many UK adults are overestimating the cost of life insurance and delaying coverage until key life events, new research from L&G reveals.
On average, people overestimate the monthly cost of life insurance by 184%, estimating it to be £79.50 when the actual average L&G policy cost was £27.95 in 2024.
Cost is the biggest barrier, with over a quarter (27%) of respondents believing life insurance is “too expensive”.
Misconceptions about cost are contributing to delays in obtaining coverage. Many are waiting for traditional milestones, such as buying a home, getting married, or starting a family, before securing protection. However, these events are occurring later than in previous generations, or not at all, due to personal choice or other circumstances.
Previous L&G research in 2024 underscores this trend, showing that 6.5 million UK adults are postponing financial products, such as life insurance, until they reach key life milestones. Broader societal patterns reinforce this behaviour: in 2025, fertility rates in England and Wales reached record lows, the median age for a first marriage is approximately 31, and the average first-time homebuyer in England is 34.
Cost remains the biggest barrier
Over a quarter of respondents said life insurance is “too expensive.” Concern was particularly high among Brighton residents and adults aged 45–54. Even younger adults, aged 18–24, who actively review their personal finances an average of 35 times a year, had a similar perception. However, many still overestimate costs and postpone coverage. When asked what might persuade them to purchase life insurance, 35% cited “lower monthly cost,” with those in Wales much more likely to be persuaded by lower costs.
Younger generations are proactive - but still misinformed
Despite their frequent financial check-ins, misconceptions persist among young adults. The survey showed motivation is a barrier: 24% of respondents aren’t planning to take out a life insurance policy, and 13% of those without one said they “haven’t had time to look into it.”
Interestingly, 41% of respondents claimed to have a “good” understanding of life insurance, highlighting a clear gap between perceived knowledge and reality. Manchester, London and Belfast residents were the most likely to rate their knowledge as “excellent”, but respondents in Scotland were the most likely to review their finances once a week.
James Shattock, managing director of UK protection at L&G, said: “There is a significant perception gap when it comes to life insurance. Younger generations are proactive with their finances, but many still overestimate the cost and underestimate the importance of protection. Life insurance isn’t just for traditional milestones — it’s a core part of financial wellbeing for anyone with dependents and is often far more affordable than people realise. Starting a policy early can mean lower premiums and stronger protection, while delaying coverage leaves families exposed to unexpected financial pressures.”
