Life insurance is still widely misunderstood, with many people dramatically overestimating how much it actually costs. A recent survey highlights the scale of the misunderstanding, showing that respondents believed a typical life insurance policy would cost around £79.50 per month.
💡 In reality, the average premium is closer to £27.95, meaning costs are overestimated by around 184%.
⏳ Why misconceptions cause delays
This gap between perception and reality has a real impact on behaviour. Many people assume life insurance is unaffordable and delay arranging cover until reaching major milestones such as marriage, having children or buying a home. For some, these events may come later than expected, or not happen at all, leaving long periods without financial protection in place.
💷 Cost remains the most common perceived barrier. More than a quarter of those surveyed said affordability was the main reason they had not taken out life insurance, despite the fact that many policies can be tailored to suit a wide range of budgets. In practice, monthly premiums can often cost less than everyday subscriptions or discretionary spending.
🔒 The value of early planning
The findings highlight the importance of understanding how flexible life insurance can be. Arranging cover earlier in life can often reduce costs while providing reassurance that loved ones would be financially supported if the unexpected were to happen.
🚨 Data accurate as of the date of publication
🚨 The above material is for informational purposes only and does not constitute a sales offer or financial advice. Before taking out any insurance, mortgage, credit agreement or other financial product, you should obtain individual advice on your requirements and the general terms of the contract.
Source: Quilter Financial Services – Essentially Mortgages Q1 2026
