Life Insurance in the UK: Index 2025
- Worth over £200bn in premiums and covering over £840bn of assets, the life insurance market in the UK is substantial, but according to IBIS World, revenues have fallen in the last five years as cost of living increases and education remains sparse.
- According to the Financial Conduct Authority, in 2023, around £4.85bn was paid out in claims on individual policies to support people suffering from bereavement, illness, and injury.
- New survey data from UK-lifeinsurance.com shows the level of people not covered by life insurance, how families will financially cope after the loss of a loved one, and the education level of Brits towards life cover.
With the cost of living crisis putting household finances under pressure and rising home prices making homeownership a stretch for many, the need for income and financial protection is as pertinent now as ever. That’s why UK-lifeinsurance.com, the independent life insurance website created to help users find the best possible life insurance quotes for their circumstances, has commissioned the 2025 Life Insurance Index. Across 2000 UK adults, UK-Lifeinsurance.com explored the number of Brits with life insurance policies, their education on these types of products, misconceptions, and affordability.
Half of adults don’t have life insurance
Self-Employed More Likely to Have Life Insurance, But Many Still Unprotected
Just 45% of adults have a life insurance policy while 15% don’t know if they have one. Moreover, over a thirds of over 55s don’t have a life insurance policy in place while more Gen Zs have policies in place compared to their Millennial peer group – 17% vs just 5%. A third of women don’t have a life insurance policy compared to just 16% of men.
Choosing the right life insurance policy is one of the most important decisions you can make to secure your loved ones’ future. With so many options available, understanding the differences between family life insurance and individual policies can help you make an informed decision that aligns with your family’s unique needs. We are going to explore the benefits and limitations of both options to help you determine which one provides the best family insurance protection for your circumstances. Whether you are considering family life insurance or life insurance for my family, finding the right coverage is essential to ensuring financial stability and peace of mind.
More people in the East Midlands don’t have a life insurance policy in place (32%) compared to any other region. Just 12% of Greater London respondents said they didn’t have a policy. By city, Sheffield had the highest percentage of respondents without life insurance, at 36%, compared to a low of Edinburgh at just 10%.
Of the self-employed, sole-traders, or business owners polled, only 57% said they had life insurance, versus 62% of the rest of the population, meaning those with potentially less guaranteed financial protection in employment don’t have coverage to protect their family in the event of their death.
Dependents left in limbo
14% of Brits said they would not know how their family would be able to afford the house or their day-to-day bills in the event of their death. This rose to 20% of 35-44 year old respondents, and 17% of 45-55 year olds, potentially a worry for thousands of families that could be left in financial peril during a time of grief.
1 in 9 rely on Inheritance to fund major finances
11% of Brits said they are reliant on inheritance from family members to afford a house or fund retirement. This increased to 13% of 25-44 year olds and 12% of 45-54 year olds. Regionally, 13% of respondents in the East of England and the North East said this was true, the highest nationally, compared to just 6% in Wales and the West Midlands. Plymouth (16%) and Norwich (15%) were the cities that people would rely on inheritance the most.
Most don’t know what their loved ones will receive upon their death
Cost of living hits life insurance
4% of Brits said they stopped their life insurance policies to cut costs due to the cost-of-living crisis. 1 in 11 people in the East Midlands did this, the highest proportion in the country.
Misconceptions with Life Insurance and Mortgages
As many lenders require life insurance as part of their terms and conditions for lending for a mortgage, many believe it’s a requirement, when in fact it isn’t law. Nearly a third of Brits think you need a life insurance policy in place to be accepted for a mortgage with that percentage rising to 40% for millennials. Regionally, this misconception is most accepted as fact in Northern Ireland, with 44% of respondents there believing it to be law.
Don’t know what life insurance is or been educated on it
Affordability and financial priority
Despite its relative affordability compared to other products, only half of Brits believe they can afford life insurance. 16% don’t think they can afford it with over a fifth of women believing they can’t afford it versus just 10% of men. This sentiment is highest in the traditionally affluent South East (22%), East Midlands (21%) and Yorkshire and The Humber (21%). However, over a fifth of Brits say they would rather save for a once in a lifetime holiday than spend money on life insurance, and only 42% of Brits say they would rather pay for life insurance, despite the significant increase in potential payout.
A spokesperson for UK-lifeinsurance.com, commented on the report: “This report shows what many of us in the industry already believed; we don’t do a good enough job in educating people about life insurance, what it is, what it is used for, its benefits and its role in estate planning and retirement.”
“Life insurance can be very affordable for most people and can give families real peace of mind to protect their loved ones financially if the worst were to happen. Also, different products can provide personalised solutions to fit people’s goals and aims.”
Don’t have a life insurance policy in place | |
All Brits | 24% |
18-24 years old | 17% |
25-34 years old | 5% |
35-44 years old | 18% |
45-54 years old | 27% |
55+ years old | 36% |
Male | 16% |
Female | 32% |
East Midlands | 32% |
East of England | 28% |
Greater London | 12% |
North East | 26% |
North West | 23% |
Northern Ireland | 18% |
Scotland | 20% |
South East | 31% |
South West | 24% |
Wales | 30% |
West Midlands | 23% |
Yorkshire and The Humber | 30% |
Don’t have a life insurance policy in place – City breakdown | |
Belfast | 17% |
Birmingham | 25% |
Brighton | 34% |
Bristol | 23% |
Cardiff | 34% |
Edinburgh | 10% |
Glasgow | 19% |
Leeds | 27% |
Liverpool | 24% |
London | 19% |
Manchester | 23% |
Newcastle | 27% |
Norwich | 33% |
Nottingham | 27% |
Plymouth | 24% |
Sheffield | 36% |
Southampton | 33% |
If I died, I would not know how my family would be able to pay for the house and/or afford day-to-day bills | |
All Brits | 14% |
18-24 years old | 14% |
25-34 years old | 17% |
35-44 years old | 20% |
45-54 years old | 11% |
55+ years old | 7% |
Male | 15% |
Female | 10% |
East Midlands | 13% |
East of England | 15% |
Greater London | 14% |
North East | 10% |
North West | 18% |
Northern Ireland | 13% |
Scotland | 11% |
South East | 14% |
South West | 17% |
Wales | 15% |
West Midlands | 15% |
Yorkshire and The Humber | 14% |
If I died, I would not know how my family would be able to pay for the house and/or afford day-to-day bills – City breakdown | |
Belfast | 12% |
Birmingham | 17% |
Brighton | 9% |
Bristol | 17% |
Cardiff | 15% |
Edinburgh | 13% |
Glasgow | 10% |
Leeds | 14% |
Liverpool | 17% |
London | 15% |
Manchester | 19% |
Newcastle | 9% |
Norwich | 16% |
Nottingham | 9% |
Plymouth | 24% |
Sheffield | 5% |
Southampton | 10% |
I am reliant on inheritance from my parents/grandparents/other family member to afford to buy a house and/or fund retirement | |
All Brits | 9% |
18-24 years old | 11% |
25-34 years old | 13%% |
35-44 years old | 13% |
45-54 years old | 12% |
55+ years old | 5% |
Male | 9% |
Female | 10% |
East Midlands | 10% |
East of England | 13% |
Greater London | 10% |
North East | 13% |
North West | 10% |
Northern Ireland | 9% |
Scotland | 9% |
South East | 9% |
South West | 11% |
Wales | 6% |
West Midlands | 6% |
Yorkshire and The Humber | 7% |
I am reliant on inheritance from my parents/grandparents/other family member to afford to buy a house and/or fund retirement – City Breakdown | |
Belfast | 8% |
Birmingham | 8% |
Brighton | 8% |
Bristol | 10% |
Cardiff | 10% |
Edinburgh | 12% |
Glasgow | 8% |
Leeds | 8% |
Liverpool | 4% |
London | 10% |
Manchester | 11% |
Newcastle | 10% |
Norwich | 15% |
Nottingham | 10% |
Plymouth | 16% |
Sheffield | 4% |
Southampton | 5% |
I have no idea what my life insurance and/or pension would pay out if I died | |
All Brits | 11% |
18-24 years old | 12%% |
25-34 years old | 14% |
35-44 years old | 13% |
45-54 years old | 14% |
55+ years old | 7% |
Male | 9% |
Female | 12% |
East Midlands | 6% |
East of England | 10% |
Greater London | 10% |
North East | 8% |
North West | 13% |
Northern Ireland | 16% |
Scotland | 9% |
South East | 13% |
South West | 9% |
Wales | 9% |
West Midlands | 14% |
Yorkshire and The Humber | 9% |
I have no idea what my life insurance and/or pension would pay out if I died – City Breakdown | |
Belfast | 16% |
Birmingham | 14% |
Brighton | 13% |
Bristol | 7% |
Cardiff | 9% |
Edinburgh | 10% |
Glasgow | 8% |
Leeds | 9% |
Liverpool | 14% |
London | 12% |
Manchester | 11% |
Newcastle | 8% |
Norwich | 11% |
Nottingham | 4% |
Plymouth | 12% |
Sheffield | 9% |
Southampton | 10% |
I have had to stop my life insurance policy to cut costs due to the cost-of-living crisis | |
All Brits | 4% |
18-24 years old | 3% |
25-34 years old | 4% |
35-44 years old | 3% |
45-54 years old | 5% |
55+ years old | 3% |
Male | 4% |
Female | 3% |
East Midlands | 9% |
East of England | 3% |
Greater London | 4% |
North East | 1% |
North West | 2% |
Northern Ireland | 0% |
Scotland | 2% |
South East | 4% |
South West | 5% |
Wales | 4% |
West Midlands | 4% |
Yorkshire and The Humber | 2% |
I have had to stop my life insurance policy to cut costs due to the cost-of-living crisis – City breakdown | |
Belfast | 0% |
Birmingham | 5% |
Brighton | 5% |
Bristol | 5% |
Cardiff | 5% |
Edinburgh | 3% |
Glasgow | 2% |
Leeds | 3% |
Liverpool | 0% |
London | 4% |
Manchester | 4% |
Newcastle | 1% |
Norwich | 1% |
Nottingham | 7% |
Plymouth | 6% |
Sheffield | 0% |
Southampton | 3% |
I believe you need to have a life insurance policy in place to be accepted for a mortgage | |
All Brits | 28% |
18-24 years old | 17% |
25-34 years old | 39% |
35-44 years old | 26% |
45-54 years old | 31% |
55+ years old | 27% |
Male | 27% |
Female | 30% |
East Midlands | 23% |
East of England | 37% |
Greater London | 32% |
North East | 19% |
North West | 30% |
Northern Ireland | 44% |
Scotland | 27% |
South East | 26% |
South West | 24% |
Wales | 30% |
West Midlands | 29% |
Yorkshire and The Humber | 22% |
I believe you need to have a life insurance policy in place to be accepted for a mortgage – City Breakdown | |
Belfast | 43% |
Birmingham | 28% |
Brighton | 27% |
Bristol | 28% |
Cardiff | 34% |
Edinburgh | 24% |
Glasgow | 27% |
Leeds | 21% |
Liverpool | 30% |
London | 31% |
Manchester | 27% |
Newcastle | 19% |
Norwich | 40% |
Nottingham | 26% |
Plymouth | 24% |
Sheffield | 20% |
Southampton | 25% |
I do not understand what life insurance is | |
All Brits | 4% |
18-24 years old | 10% |
25-34 years old | 3% |
35-44 years old | 5% |
45-54 years old | 4% |
55+ years old | 3% |
Male | 4% |
Female | 5% |
East Midlands | 5% |
East of England | 2% |
Greater London | 5% |
North East | 5% |
North West | 6% |
Northern Ireland | 9% |
Scotland | 3% |
South East | 4% |
South West | 3% |
Wales | 3% |
West Midlands | 6% |
Yorkshire and The Humber | 4% |
I do not understand what life insurance is – City Breakdown | |
Belfast | 9% |
Birmingham | 7% |
Brighton | 8% |
Bristol | 3% |
Cardiff | 3% |
Edinburgh | 4% |
Glasgow | 2% |
Leeds | 1% |
Liverpool | 5% |
London | 4% |
Manchester | 7% |
Newcastle | 5% |
Norwich | 1% |
Nottingham | 5% |
Plymouth | 4% |
Sheffield | 9% |
Southampton | 1% |
I have never been educated about life insurance | |
All Brits | 24% |
18-24 years old | 25% |
25-34 years old | 14% |
35-44 years old | 24% |
45-54 years old | 29% |
55+ years old | 25% |
Male | 18% |
Female | 29 |
East Midlands | 21% |
East of England | 27% |
Greater London | 18% |
North East | 21% |
North West | 28% |
Northern Ireland | 24% |
Scotland | 24% |
South East | 25% |
South West | 22% |
Wales | 17% |
West Midlands | 23% |
Yorkshire and The Humber | 29% |
I have never been educated about life insurance – City Breakdown | |
Belfast | 22% |
Birmingham | 24% |
Brighton | 25% |
Bristol | 18% |
Cardiff | 19% |
Edinburgh | 21% |
Glasgow | 26% |
Leeds | 25% |
Liverpool | 22% |
London | 22% |
Manchester | 27% |
Newcastle | 21% |
Norwich | 35% |
Nottingham | 19% |
Plymouth | 33% |
Sheffield | 34% |
Southampton | 19% |
Life insurance is an expense I cannot afford | |
All Brits | 16% |
18-24 years old | 11% |
25-34 years old | 8% |
35-44 years old | 13% |
45-54 years old | 22% |
55+ years old | 19% |
Male | 10% |
Female | 21% |
East Midlands | 21% |
East of England | 16% |
Greater London | 10% |
North East | 18% |
North West | 12% |
Northern Ireland | 15% |
Scotland | 12% |
South East | 22% |
South West | 18% |
Wales | 15% |
West Midlands | 12% |
Yorkshire and The Humber | 21% |
Life insurance is an expense I cannot afford – City Breakdown | |
Belfast | 14% |
Birmingham | 14% |
Brighton | 25% |
Bristol | 20% |
Cardiff | 18% |
Edinburgh | 13% |
Glasgow | 12% |
Leeds | 21% |
Liverpool | 12% |
London | 14% |
Manchester | 14% |
Newcastle | 17% |
Norwich | 19% |
Nottingham | 15% |
Plymouth | 14% |
Sheffield | 18% |
Southampton | 17% |
I would rather save for a once in a lifetime holiday then spend money on life insurance | |
All Brits | 22% |
18-24 years old | 21% |
25-34 years old | 20% |
35-44 years old | 17% |
45-54 years old | 23% |
55+ years old | 25% |
Male | 21% |
Female | 22% |
East Midlands | 27% |
East of England | 22% |
Greater London | 22% |
North East | 21% |
North West | 21% |
Northern Ireland | 25% |
Scotland | 19% |
South East | 23% |
South West | 19% |
Wales | 22% |
West Midlands | 24% |
Yorkshire and The Humber | 19% |
I would rather save for a once in a lifetime holiday then spend money on life insurance – City Breakdown | |
Belfast | 24% |
Birmingham | 24% |
Brighton | 34% |
Bristol | 18% |
Cardiff | 23% |
Edinburgh | 18% |
Glasgow | 22% |
Leeds | 21% |
Liverpool | 25% |
London | 21% |
Manchester | 23% |
Newcastle | 19% |
Norwich | 25% |
Nottingham | 21% |
Plymouth | 22% |
Sheffield | 19% |
Southampton | 17% |
Notes to editors:
Full results from a Censuswide survey on behalf of UK-lifeinsurance.com
> Censuswide abides by and employs members of the Market Research Society which is based on the ESOMAR principles.
> 2,000 respondents surveyed 20/05/23 – 23/05/23 (nationally representative, aged 18+)
