Best life insurance in the UK 2024

Which life insurance is best to get?

Life insurance can help give you peace of mind that your loved ones won't be financially crippled if tragedy strikes. 

There are many reasons you might want to consider a policy, including taking out a mortgage, moving in with a partner, having a child or to avoid inheritance tax by putting your life insurance policy in trust. 

Ultimately, the best type of life insurance for you depends on your individual circumstances and the reasons for taking out a policy. Find out more about the different types of life insurance.

There are three types of life insurance:

• Term insurance Also known as standard life insurance, this is the most popular type of life insurance in the UK and the focus of the article.
• Family income benefit insurance
• Whole-of-life insurance

Compared to whole-of-life insurance, term life insurance can be cheaper and more flexible, as you only pay for cover over a set period of time. If you die within that term, your family will receive a payout. 

Below, we've compared the prices and policies of the main providers, as well as considering key factors that can affect your quote. 

Please note that the information in this article is for information purposes only and does not constitute advice. Please refer to the particular terms and conditions of an insurer before committing to any financial products.

Looking to buy life insurance?

Find the right life insurance policy using the service provided by LifeSearch.

Find out more

Life insurance UK companies compared

We've compared the policies of the UK's biggest insurance providers and those who most commonly quoted the cheapest premiums in our scenarios. It's important to note that these are illustrative examples – the price you’re offered may differ, based on your circumstances and the cover you’re looking for. As always, Which? is editorially independent and not influenced by third parties.

AIG

American International Group (AIG) was founded in 1919 and now operates in more than 80 countries.

It sells level, decreasing and increasing term policies and critical illness cover. It also sells whole-of-life insurance and income protection. 

• Level term policy cost (£300,000, 30-year-old non-smoker): £95
• Maximum age to purchase a policy: 86 (Term Assurance plan), 56 (Instant Life Insurance plan)
• Maximum plan age: 90

According to its published statistics for 2022, AIG paid 99% of the life insurance claims it received.

What does AIG offer?

AIG doesn’t sell directly to customers; its products can only be bought through financial advisers.

AIG provides a funeral pledge of £10,000, which means it will make immediate payment towards funeral costs as soon as your claim has been accepted.

Its policies offer an optional Waiver of Premium benefit (at extra cost). This means that if at any point you can’t work due to injury or illness (a minimum of 26 weeks incapacitated), you won’t have to pay your life insurance premium.

How much does it cost?

Across 36 scenarios we looked at, combining different cover requirements and policyholders, AIG was most commonly ranked among the cheapest three providers (in 32 scenarios).

For a 30-year-old, a level term policy for £300,000 cover costs £95 a year; for a 50-year-old, it is £408. In both cases, AIG was the cheapest provider of 10compared.

• Find out more about AIG and its life insurance policies using the service provided by LifeSearch

Aviva

Formerly known as Norwich Union, the company we now know as Aviva traces its heritage back to 1696.

It sells level, decreasing and increasing term policies with the option to add critical illness cover. It also sells over-50s life insurance, income protection and private health insurance.

• Level term policy cost (£300,000, 30-year-old non-smoker): £113
• Maximum age to purchase a policy: 77 
• Maximum plan age: 90

According to its published statistics for 2022, Aviva paid 99.4% of the life insurance claims it received.

What does Aviva offer?

With its insurance, you also get access to the Aviva DigiCare+ smartphone app, which helps you check your health, provides advice and can be used to connect to clinicians, nutritionists and therapists.

Aviva is a signatory to the Protection Distributors Group Funeral Payment Pledge, which requires insurers to make an immediate payment of at least £5,000 for funeral costs when other parts of valid claims are held up (for example, by probate delays). 

• Find out more: Many life insurance providers offer ‘perks’, but are they worth it?

How much does it cost?

Aviva was one of the cheapest providers across a range of price scenarios we looked at. When we checked prices for a 30-year-old, a level term policy for £300,000 cover cost £113 a year, one of the three (of 10) cheapest providers. However, a 50-year-old would pay £604 for the same cover, which is higher than average for this scenario.

• Find out more about Aviva and its life insurance policies using the service provided by LifeSearch

HSBC

HSBC traces its origins to 1836. The global banking organisation has been providing life insurance in the UK since 1988.

It sells level and decreasing term cover with the option to add critical illness cover. It also sells income protection.

• Level term policy cost (£300,000, 30-year-old non-smoker): £111
• Maximum age to purchase a policy: 69
• Maximum plan age: 79

According to its published statistics for 2022, HSBC paid 98.7% of the life insurance claims it received.

What does HSBC offer?

Its policies come with an accidental death benefit, which provides immediate cover in the event of a claim caused by accident or injury.

HSBC is a signatory to the Protection Distributors Group Funeral Payment Pledge, which requires insurers to make immediate payment of £5,000 for funeral costs when other parts of valid claims are held up (for example, by probate delays). 

How much does it cost?

HSBC was one of the providers to most often come up among the cheapest three across 36 pricing scenarios. 

When we checked prices for a 30-year-old, a level term policy for £300,000 cover cost £111 a year, the second cheapest of 10. A 50-year-old would pay £547 for the same cover – again, second cheapest.

• Find out more: joint vs single life insurance

Find out more about taking out a life insurance policy using the service provided by LifeSearch

Legal & General

Established in 1836, Legal & General is the UK’s biggest provider of term cover.

• Level term policy cost (£300,000, 30-year-old non-smoker): £118
• Maximum age to purchase a policy: 77 for level and increasing plans and 74 for decreasing plans.
• Maximum plan age: 90

According to its published statistics for 2022, Legal & General paid 96.7% of the life insurance claims it received.

What does Legal & General offer?

Legal & General sells level, decreasing and increasing term policies with the option to add critical illness cover. It also sells over-50s life insurance and income protection.

Its term policies come with accidental death benefit as standard, providing cover for death by injury from day one (even if the application for your policy is still being processed).

Legal & General provides a funeral pledge of £10,000 and will make immediate payment towards funeral costs of up to this amount as soon as your claim has been accepted.

You can also pay extra for a Waiver of Premium benefit so that during periods of incapacity (a minimum of 26 weeks), you won’t have to pay your life insurance premium.

The provider also offers Wellbeing Support as standard. This is a free, phone-based service that connects you to trained specialist nursing staff for medical advice and support. 

How much does it cost?

When we checked prices for a 30-year-old, a level term policy for £300,000 cover cost £118 a year – about average. A 50-year-old would pay £638 for the same cover – expensive compared to other providers.

• Find out more: Can I have more than one life insurance policy?

Find out more about Legal & General and its life insurance policies using the service provided by LifeSearch

Royal London

Royal London, one of the UK’s largest insurers, was founded in 1861.

It sells level, decreasing term policies through its website, covering up to £750,000. Plans bought through advisers come with more options, such as higher limits, increasing term cover and options to add critical illness cover and income protection. It also sells whole-of-life insurance.

• Level term policy cost (£300,000, 30-year-old non-smoker): £127
• Maximum age to purchase a policy: 70 (Direct) 89 (Advised)
• Maximum plan age: 90

According to its published statistics for 2022, Royal London paid 95.4% of the term insurance claims it received.

What does Royal London offer?

Customers buying directly from Royal London can add serious illness cover to their life insurance. This pays out a lump sum if you’re diagnosed with one of six medical conditions (cancer, heart attack, stroke, multiple sclerosis, benign brain tumour, dementia) that have reached a specified level of severity. 

If you're buying through an adviser, you can add Waiver of Premium options. So if you’re seriously ill for over 4-52 weeks (the shorter this period, the more you pay), or are terminally ill, you won’t have to pay your life insurance premiums during the period of illness.

Royal London is a signatory to the Protection Distributors Group Funeral Payment Pledge, which requires insurers to make immediate payment of at least £5,000 for funeral costs when other parts of valid claims are held up (for example, by probate delays). 

How much does it cost?

When we checked prices for a 30-year-old, a level term policy for £300,000 cover cost £127 a year – pricier than average. A 50-year-old would pay £586 for the same cover – around average. 

• Find out more: Life insurance with cancer – what you need to know

Find out more about Royal London and its life insurance policies using the service provided by LifeSearch

Vitality

Formerly known as the Prudential, Vitality uses rewards schemes to incentivise customers to make healthy lifestyle choices. 

It sells level, decreasing and increasing term cover with the option to add critical illness cover. It also sells whole-of-life cover, over-50s life insurance, income protection and private health insurance.

• Level term policy cost (£300,000, 30-year-old non-smoker): £113
• Maximum age to purchase a policy: 74
• Maximum plan age: 90

According to its published statistics for 2022, Vitality paid 99.7% of the life cover claims it received.

What does Vitality offer?

You can select an Optimiser, or discount, to apply to your first-year premium. In subsequent years, depending on how healthy and physically active you are, this level of discount can change, so your premiums could go up or down.  

Vitality’s policies also offer an optional Waiver of Premium benefit, so if you are incapacitated and unable to work, you won’t have to pay your premium until you’ve recovered.  

Vitality is a signatory to the Protection Distributors Group Funeral Payment Pledge, which requires insurers to make immediate payment of at least £5,000 for funeral costs when other parts of valid claims are held up (for example, by probate delays).

How much does it cost?

When we checked prices for a 30-year-old, a level term policy for £300,000 cover cost £113 a year – slightly cheaper than average. A 50-year-old would pay £609 for the same cover – pricier than other providers.

• Find out more about Vitality and its life insurance policies using the service provided by LifeSearch

How much does life insurance cost in the UK?

The price you pay for life insurance (and consequently the best provider for you) varies significantly depending on your personal circumstances and the level of cover you need. 

The table below shows the annual cost of cover from 10 providers for different levels of cover for a 30-year-old non-smoker, buying level-term cover for 20 years.

What can increase life insurance costs?

The price you may end up paying could be very different from these examples. Shorter or longer terms (the period during which the cover applies) will reduce or increase the price. Similarly, while these prices reflect 'level' term insurance, meaning the premium and cover stay the same for the duration of the policy, alternatives are available. 

The average price of £117 for a level term policy went down to £94 (or £7.82 per month) for a decreasing policy. Decreasing policies are usually taken out to cover a debt that reduces over time, such as a mortgage, so the level of cover goes down each year. 

You may also opt to combine your cover with other kinds of insurance, such as critical illness cover or income protection.

Any health conditions you have, or aspects of your lifestyle that could affect your life expectancy, such as drinking or smoking, may also impact your price. A major influence on your premium is your age, and term cover is substantially cheaper to buy when you're young.

A 30-year-old non-smoker buying £300,000 cover can expect to pay around £117 a year (or £9.79 a month). But a 50-year-old buying the same product can expect to pay £580 (£48.37 per month). 

• Find out more: Do I need life insurance for a mortgage?

Why should I buy life insurance?

A life insurance policy can offer you and your family peace of mind should something happen. You may decide to take out a policy in a variety of situations:

• You are married, in a civil partnership or moving in together: It's worth considering how your partner would cope financially if you weren't there. A level term policy will pay out a set lump sum while an increasing term policy will rise with inflation. If you're looking for life insurance for both you and your partner, you may decide that two separate policies are better than a joint policy. Separate policies sometimes make the most sense as you get two possible payouts should you both die during the term, rather than just one payout as with a joint policy. 
• Taking out a mortgage: While it is not necessary to have a life insurance policy when taking out a mortgage, it could help cover the debt should you die. When you need to cover a debt such as a mortgage you can buy decreasing term life insurance so the amount paid out reduces over time as you pay off the mortgage.
• Are a parent: if you have children, it may be worth buying a life insurance policy so that you know your family will be protected should you die. The amount of cover you take out may depend on the age of the children. For example, you may wish to cover small kids' school fees or for older children, their university costs. You can choose to cover your child to 'maturity', which is typically until 18, though can be adjusted to post-18 should you wish. Level and increasing term insurance will pay out a lump sum that could help your kids.
• Inheritance tax: If you know that your estate will be subject to a large inheritance tax bill, you could use a life insurance policy, set up in trust, to pay off that tax. By doing this, your family is left with your entire estate and is not forced to sell off any property to pay the tax liabilities.

What are the main types of life insurance?

Term life insurance:

Standard life insurance is called term life insurance, where you pick a timeframe (term) for the coverage. This is the type of life insurance we reviewed above. There are three main types:

• Decreasing term: tailored for big debts such as mortgages, it pays inline with the money needed to clear the outstanding loan. Premiums stay the same, making it the cheapest of the three types.
• Level term: offers a set amount if you pass away during the term. Premiums are steady but higher than decreasing term, due to a fixed payout.
• Increasing term: the payout grows by a fixed percentage or with inflation, such as RPI (retail prices index) or CPI (consumer price index). This option is more expensive.

Family income benefit policies:

Instead of a lump sum payment, family income benefit insurance gives regular monthly payments to beneficiaries until the policy ends if you pass away.

The monthly payout stays the same, but as months pass, the total payout decreases until the policy is paid out.

When thinking about family income benefit policies, it’s worth figuring out the needed monthly income for your family's financial stability if you're not around.

Whole-of-life policies:

Whole-of-life insurance is a continuous policy that pays out whenever you pass away, as long as you keep paying the premiums, typically until you reach age 90. 

These policies are more costly than term insurance because they pretty much guarantee a payout, considering everyone eventually passes away, unlike term policies that only pay if you die within a specific timeframe.

Looking to buy life insurance?

Find the right life insurance policy using the service provided by LifeSearch.

Find out more

Best over-50s life insurance

Over-50s life insurance sometimes refers to a product that will pay a lump sum when you die. We generally do not recommend this product, given that you may pay more in premiums than your loved ones will receive in the event of your death. 

However, if you're over 50, you may still want to consider a standard life insurance policy, given that many people are now having children and taking out mortgages much later in life. Speak to a financial adviser who can help with your individual circumstances.

As the data above shows, life insurance costs are much higher as you reach 50 and vary from insurer to insurer. For a 50-year-old non-smoker buying level term cover to protect £300,000 cover ranged from £408 annually (AIG) to £638 (Legal & General). 

While your individual health and circumstance will affect what you pay, our research shows that it pays to shop around to get the best over-50s life insurance. Read our guides on over-50s life insurance for more information.

Best age to get life insurance

The price of life insurance goes up as you get older because younger people tend to be healthier, have fewer medical issues and are less likely to die during their term. 

In our research, looking at a level term policy for £300,000, we found a difference of £463 in price between the average for a 30-year-old (£117 per year) and a 50-year-old non-smoker (£580 per year). 

It's not just age that insurers will base your costs on. Medical history, work, hobbies, family history and whether you're a smoker or not will all be assessed and affect what you pay. 

If you're thinking of taking out a policy, speak to a financial advisor to determine the best type of cover for your needs.

• Find out more: life insurance for smokers

How much cover should you get?

Deciding how much life insurance to get boils down to looking at your financial situation and the needs of your family or loved ones. Consider things such as debts, funeral costs, and mortgages. Think about everyday expenses, including kids' education, and healthcare.

You may aim for coverage that replaces your income for a certain number of years. This helps your family financially right after you're gone. Remember to account for any other income streams your loved ones may have.

You may also choose to cover a loan, such as a mortgage with a decreasing term policy. This means that should you die, the policy will cover the amount you’ve set for the mortgage until it is repaid. 

Keep an eye on your life insurance needs. When major life events happen, like getting married, having kids, or buying a home, you may need to adjust your coverage. You can also talk to a financial advisor to figure out what works best for you.

• Find out more: Is private health insurance worth it?

How we compared life insurance policies

To compile our list, we compared a variety of scenarios at different life insurance companies, including the UK's biggest providers and those who most commonly quote the cheapest premiums.

We also analysed the provider's published claims statistics and the eligibility of policies (by age). We compared average annual cover prices and what was offered to assess the value different providers gave. 

Life insurance costs will vary depending on your personal circumstances, so if you are looking to take a policy, it's best to shop around.

• Find out more: life insurance for people with diabetes

More questions on life insurance? Take a look at our guides:

• What is life insurance? The different types explained
• What is term life insurance?
• How much is statutory sick pay?
• Whole-of-life insurance explained
• Income protection insurance
• Family income benefit insurance explained
• Critical illness insurance explained
• Do I need life insurance for a mortgage?
• Can you have more than one life insurance policy?
• Joint vs single life insurance: which is best for you?
• How to write life insurance in trust
• Life insurance for people with diabetes explained
• Accidental death insurance and cover explained
• Life insurance for smokers explained
  
• Life insurance with cancer explained
  
• Over 50s life insurance explained: is it worth getting?