The most expensive region to keep yourself protected has been revealed

You may be surprised, however, to discover just how cheap life insurance can be throughout different areas of the UK. The Insurance Surgery surveyed 100 people to find out where they live and how much they pay for life insurance per month.

Data shows that people in the South East of England pay the most for life insurance, spending an average of £38.75 per month, whilst people in the North East only pay an average of £20 this is potentially down to the house prices in the different regions. At such affordable rates, why are 64.2% of people living without life insurance?

Key Findings:

63.8% of people in the UK with life insurance have critical illness cover included.37.8% of people in the UK got life insurance between the ages of 26 and 35.66% of people surveyed have savings.90.2% of people don’t have income protection.64.2% of people surveyed do not have life insurance.

How much are people paying for life insurance across the UK?

With prices generally higher in London, it’s no surprise that life insurance costs are at their highest in the South East of England. All things considered, £38.75 remains quite the affordable average when you take into account the coverage and security it can offer - particularly for homeowners in these pricier areas.

Life insurance costs are even lower in more northern locations such as the North East (£20) and the North West (£25), where the cost of living is substantially lower. Despite the affordable pricing, however, our research found that 64% of people do not currently have life insurance.

Why do people take out life insurance?

Life insurance is particularly popular among homeowners. It works to ensure that your family’s finances are protected by supporting them with mortgage payments should you pass away during your agreement. With this in mind, it makes sense why a majority of our survey chose to invest in life insurance between the ages of 26 and 35 - the age group wherein people tend to buy their first homes.

You may think of life insurance as something to consider much later in life, but the statistics show that the most popular time to seek life insurance is within the 26-35 age bracket, closely followed by the even younger category of 18-25 at 28.9%. This highlights the value of life insurance for all age groups, with plenty of young people already thinking about the future of their finances. Showcasing the importance of purchasing life insurance earlier as it often makes it cheaper than buying later in life.

​​But what about income protection?

Unlike life insurance, income protection protects your finances if you’re unable to work as a result of illness or injury. This is useful for covering expenses like bills, mortgages, food and childcare if you’re not able to work on the basis of your health. Despite its benefits, our findings show that 90.2% of people do not currently have income protection. The average cost of income protection insurance does vary depending on several factors such as salary and age; however, prices can start from £7.00 per month.

Instead, many people rely on savings alone to cover those ‘rainy days.’ We found that 66% of people have savings set aside, but when income protection insurance is available at such affordable prices across the United Kingdom, why not invest? Depending on how much you have set aside, savings can be pretty finite, whereas income protection can offer extended coverage depending on your agreement.

Andy Mellor, Managing Director at The Insurance Surgery comments on the above trends and the value of securing Life Insurance:

“Many people overlook the security that life insurance can offer, ignoring its benefits and assuming it is a costly endeavour. However, our clients are often surprised to discover just how affordable and accessible securing life insurance quotes can be.

With all of the benefits considered, life insurance offers value for families and homeowners throughout the nation, providing peace of mind and financial security during some of life’s toughest moments. It is for this reason that 37.8% of people invested in life insurance between the ages of 26 and 35, around the time when many people settle down, start families and buy houses.”