the average cost of life insurance

The cost of life insurance varies from person to person. So if you’re a non-smoker, for example, you’ll pay less than a smoker. And younger people usually pay less than older ones.

 The cost will also depend upon the type of cover. For example, ‘level’ term insurance, where the amount of cover stays the same for a set number of years, costs more than ‘decreasing’ term insurance, where the amount reduces over the years (usually in line with a mortgage).

To get an idea of how premiums can differ, let’s look at price a 30-year-old non-smoker would pay for a 25-year term policy with a £200,000 pay-out, and the price a 45-year-old smoker would pay for the same cover.

Running a quote on MoneySuperMarket, a 30-year-old non-smoker could expect to pay around £8.50 a month, which works out at a total of £2,550 over the life of the policy.

The 45-year-old smoker would pay nearer £50 a month over the life of the policy, or £15,000 over the 25-year term.

So the earlier you buy insurance, the cheaper the premiums will be. And stopping smoking will also have a dramatic effect on what you pay.