The nation's relationship with life insurance

For many people, life insurance is an important way to protect their loved ones. But how many of us actually have it? And how much do people really know about this kind of cover?

Last updated: 13/8/2025 | By Gulay Yildirim

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About the research

The data used in this article is from a January 2022 survey. But it still gives a good idea of what many people in the UK think and know about life insurance today.

Attitudes to life insurance in the UK

Life insurance helps protect your family financially if something happens to you. But how many people in the UK have it? And how much do we really understand about it?

Keep reading to find out. You can also try our life insurance quiz and see if you know the facts. We’ll answer some of your top life insurance questions too.

More than half of adults insured

We asked 2,000 people across the UK for their views on life insurance. More than half (53%) said they already have a policy in place.

Men were slightly more likely to have one than women. About 56% of men said they had life cover, compared to 51% of women.

Most people who have it seem pleased with it. Over three-quarters (77%) said they were happy or very happy with their policy.

Honesty is everything

Some consumers could lose their life insurance or have their claim refused if they don’t tell the truth when they apply.

While most people in our survey (79%) said they were completely honest in their application, 15% said they didn’t tell the full truth. Another 6% said they gave false information.

Women were more truthful than men. About 85% of women said they gave all the right information. Only 72% of men said the same.

It’s really important to give the right information. If you lie or leave things out, the insurer might cancel your policy or not pay out.

A family focus

Almost 4 in 10 people (39%) said they got life insurance when they were aged 25 to 34. This makes sense, as many people start families at this age.

Three out of four people with life cover (75%) said their main reason was to look after their family if something happened to them.

On average, mums in England and Wales have their first baby at 29. Dads are about 33. So it’s a popular time to get cover.

Here’s when other people said they got life insurance:

  • 22% were aged 35 to 44
  • 20% were aged 18 to 24
  • 12% were aged 45 to 54
  • 7% were aged 55 or older

Those who told us they don’t have life insurance gave a few reasons. Among the most common were they felt it costs too much (32%) or that they were too young to need it (28%).

When we asked what might make them buy it, they said:

  • 36% would if they became rich
  • 25% would if they had children
  • 19% would if they bought a home

Family protection was the most important reason to get life insurance, according to our survey results. Next came:

  • The cost each month or year
  • The size of their mortgage
  • The name of the insurance company
  • The amount of money the policy would pay out

And here’s how much people were happy to pay for cover each month:

  • 30% would pay £15 to £20
  • 29% would pay up to £15
  • 19% would pay £21 to £30
  • 10% would pay £31 to £40
  • 6% would pay £41 to £50
  • Another 6% would pay more than £50

Getting the right cover for you

Our survey revealed people in the UK think differently about life insurance and some don’t know much about it. But if you take the time to learn, you’ll feel more confident choosing the right cover. That way, you’ll help protect your loved ones' finances if anything happens to you.

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Protect what matters. Get a life insurance quote

Take our life insurance quiz

Test your knowledge of life insurance by taking our quiz. In brackets after each option, we've included the percentage of our survey respondents who selected this answer.

  1. Which of the following would you expect a life insurance policy to cover?

    A. Critical illness (28%)

    B. Funeral costs (26%)

    C. Income protection (21%)

    D. Medical costs (22%)

    E. None of the above (3%)

     

    Answer - The correct answers are A and C. Critical illness and income protection are extra types of cover you can add to a life insurance plan but they usually cost more. Life Insurance gives a big payment of money when someone dies. That money can be used for anything, like paying for a funeral or hospital bills.

  1. Below are some statements about life insurance. Please read each statement carefully and pick the one that best describes your understanding of how a life insurance policy works.

    A. Money is paid to an insurer, usually each month for a certain length of time, and upon death any beneficiaries will receive a payout. (55%)

    B. A premium is paid to the insurance provider, usually in monthly intervals, for the duration of the policy. Money can be withdrawn at any point to cover life events. (20%)

    C. You pay an insurer a monthly fixed payment subject to your level of health. (15%)

    D. I don't know (10%)

     

    Answer - The correct answer is A. You pay money to an insurer, usually each month. Then when you die, your insurer pays out to your beneficiaries.

  1. To your understanding, choose one or more statements that best describe how the payout of a life insurance policy to your beneficiaries works.

    A. Beneficiaries will receive the policy lump sum upon the insured passing. (43%)

    B. Beneficiaries can choose to receive a series of payments. (24%)

    C. Beneficiaries can choose to put the funds in an interest-earning account. (14%)

    D. I don't know (19%)

     

    Answer - A is correct. The legal beneficiary will receive the relevant lump sum payment and can choose how to spend it, which may include settling the policy holder’s estate, paying towards their funeral, paying off the mortgage or providing financial security for those left behind.

  1. To your understanding, can you get life insurance if you have a pre-existing medical condition?

    A. No, it will be impossible to get a life insurance policy with a pre-existing condition. You are required to have a satisfactory health report. (12%)

    B. You may be able to get life insurance with a pre-existing condition, but it will cost more and take longer to be accepted. (61%)

    C. Yes, you will be able to get life insurance like any other person with no differences at all. Insurance providers are not allowed to ask about your health. (13%)

    D. I don't know (14%)

     

    Answer - The correct answer is B. If you already have a pre-existing condition, you might still be able to get life insurance. But it could cost more money and the insurer might not say yes right away. Sometimes, they’ll give you insurance but they won’t cover that specific condition. That means if you die or get very sick because of it, the insurance won’t pay out any money.

  1. Choose the statement that best describes the difference between life insurance and life assurance.

    A. Life insurance covers you for a specific term or amount of time. Life assurance aims to cover the policyholder for your entire life. (36%)

    B. Life assurance covers you for a specific term or amount of time. Life insurance aims to cover the policyholder for your entire life. (38%)

    C. Life insurance and life assurance are both the same. They cover you for a specific term or amount of time. (26%)

     

    Answer - The correct answer is A. Life insurance covers you for a certain length of time or a specific term, for example the duration of your mortgage. You will only pay a premium during this term and only be covered if you die during this term. In contrast, life assurance usually covers you for your entire life.

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Common life insurance questions

  • Yes. You can apply even if you have a health condition like diabetes or cancer. The insurer may ask for medical info from your GP or a health check. You might pay more or they may exclude that condition from the policy. If it’s excluded and you die from it, the policy won’t pay out.

  • Yes, the payout from a life insurance policy can help cover funeral costs. With our Over 50s Life Cover, you can add a free funeral benefit option. This gives you a discount on certain funeral plans.

  • No, the payout itself isn’t taxed. But if it’s part of your estate, it could affect how much inheritance tax your family pays. To avoid this, you can write your policy ‘in trust’ so the money goes straight to your beneficiaries and isn’t taxed. Get financial advice if you’re unsure.

  • Life insurance pays out if you die during the policy term. There are three main types of term life insurance:

    • Decreasing cover is often used for repayment mortgages. The payout drops in line with your remaining loan, but your premium stays the same and is usually lower
    • Level cover gives a fixed payout. It can help support your family or pay off an interest-only mortgage
    • Increasing cover rises over time to protect against inflation. Payouts and premiums both go up
  • Read more
  • Standard life insurance works the same regardless of your age. You pay regular premiums and, if you pass away during the policy term, the people named in your policy get a cash lump sum.

    But, once you turn 50, you also have the option to apply for over 50s life cover. This type of insurance is designed specifically for people aged 50 to 80. It offers a guaranteed payout when you die. The amount is typically smaller than with standard life insurance and is often used to help cover funeral costs, unpaid bills or leave a small gift for loved ones.

  • It depends on your mortgage type.

    • Interest-only mortgages: Level cover could help pay off the full loan if you die during the policy
    • Repayment mortgages: Decreasing cover reduces over time with your loan and is often cheaper

    Always compare policies to find the right fit for your needs.

    Read more about mortgage life insurance

  • Life insurance and life assurance both help your loved ones with money when you die but they work differently.

    Life insurance covers you for a set time, such as 10 or 20 years, and pays out if you die during that time. Life assurance lasts your whole life and guarantees a payout no matter when you die.

    Which one is better depends on what you need. Life insurance can be cheaper if you only want cover for a certain period. Life assurance is good if you want lifelong protection.

    Read more: life insurance vs life assurance

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Take steps today to protect what matters

About the research

Survey conducted by Pollfish in January 2022 with 2,000 UK people aged 18 and over.

Pollfish is an ISO-certified platform that follows the ESOMAR Gold Standard for data collection. It uses GEO-IP verification to check where respondents are and that they and their answers are real. It checks for bots, strange patterns and suspicious activity. And it follows data protection regulations including GDPR, CAN-SPAM, COPPA and CCPA.

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