Life Insurance Calculator
Our life insurance calculator estimates the monthly premium and appropriate cover level for term life insurance — the most cost-effective form of life cover in the UK. Enter your age, cover amount, term length, and smoking status to get an indicative monthly cost based on current market rates.
Life Insurance Calculator
Calculate how much life insurance cover you need to protect your family and estimate your monthly premium.
Premium estimates are indicative. Actual premiums depend on full underwriting. Always compare regulated life insurance providers.
How Much Life Insurance Do You Need?
A common rule of thumb is 10 times annual salary plus outstanding mortgage. For a homeowner earning £45,000 with a £200,000 mortgage and two children, this suggests cover of approximately £650,000. A 35-year-old non-smoker can typically obtain £500,000 of level term cover for 25 years for approximately £22–£30 per month. Age is the single biggest driver — premiums increase significantly with each year of delay. Use our Mortgage Protection Calculator to see how decreasing term insurance compares, and our Term vs Whole Life Calculator to understand the long-term cost difference.
Frequently Asked Questions
Level term pays the same fixed sum throughout the policy term. Decreasing term reduces the payout in line with a repayment mortgage balance. Decreasing term is cheaper but leaves no additional lump sum for dependants beyond the mortgage.
Yes — writing a policy in trust keeps the payout outside your estate, avoiding potential inheritance tax and probate delays. It is a simple free process with most insurers.
Yes — though premiums may be higher or specific conditions excluded. Always disclose all medical history fully — non-disclosure can invalidate a claim.
A life insurance payout is not subject to income tax or capital gains tax. If the policy is not in trust, the payout forms part of your estate and may be subject to inheritance tax.
Review at every major life event: marriage, divorce, new mortgage, new child, significant income change.
Enter the sum assured you require — typically enough to cover your mortgage balance, replace your income for dependants until financial independence, and cover any final expenses. Ten times annual salary is a common starting benchmark. Select the term: cover until the mortgage is repaid, children are grown, or you reach state pension age are the most common rationales. Age and smoking status are the primary drivers of premium. The calculator shows estimated monthly premiums across term lengths. For young, healthy non-smokers, the premium is modest relative to the protection provided. Always buy through an FCA-authorised provider or broker and disclose all health information accurately — non-disclosure can invalidate a claim.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.