Updated: October 15, 2019

What is the Cost of a Whole Life Insurance Policy?

Want to know what factors could affect the cost of your whole of life insurance policy? Read through our guide to find out.

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: October 15, 2019

Whole of life cover is a form of life insurance that guarantees your beneficiaries receive a lump sum payout when you pass away – provided you stick to the terms of your plan.

It tends to be a more expensive option than term life insurance, mainly due to the fact that insurers know they have to make a payout at some point in time – not to mention the additional risks taken in providing this type of cover.

How much whole of life insurance costs does depend on a number of factors, which we’ll be discussing in this article:

What factors impact the cost?

What end payout you want your beneficiaries to receive will, to some extent, dictate the price of your policy. However, your personal circumstances also play a significant role in determining how much your whole life insurance will cost.

Some of the factors insurers consider when calculating how much your monthly premiums are include:

  • Your health history
    Unless you take out specialist over 50s life insurance (more on this later) insurers will require a medical exam and access to your health records. History of a serious health condition, or an indication that you may suffer from one in the future (e.g. if you’re overweight or have high cholesterol, etc) is likely to increase the cost of your premiums.

 

  • Family health history
    Even if you’re in good health when you take out life cover, a family history of illness, particularly hereditary diseases (e.g. cancer, heart disease, Alzheimer’s disease, etc.) is also likely to boost the cost of your premiums, because it means you’re more at risk of developing one yourself.
  • Lifestyle
    If you live an unhealthy lifestyle, for example if you’re a smoker, heavy drinker or drug user, you are more at risk of developing a fatal disease. This means increased premiums – although many insurers will not payout if you die as a result of drink or drug abuse.

 

  • Job/hobbies
    If you have what is deemed a particularly “high risk” job (i.e. something that requires you to perform dangerous duties or exposes you to toxic chemicals), this will impact the cost of your whole life insurance. Similarly, if you’re an adrenaline junkie who regularly engages in “dangerous” hobbies this can increase the cost of your premiums.

How does age impact the cost?

How old you are when you take out any type of life cover, whole life insurance included, is probably the most important factor in determining how much your policy is going to cost you.

From the outset of the policy, younger policyholders will pay lower premiums than older ones. The price to start a new policy increases as you age, there is a bigger drain on the cash value as a result of the rising mortality charges.

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How much does a policy cost on average?

How much whole life insurance will cost you is determined by the factors discussed above, so it’s very much a case-by-case basis.

When you apply for a policy, you’ll usually be quoted how much you can expect to pay per month; how much you end up paying in total will of course depend on how old you are when you pass away.

How much does it cost per month?

It’s difficult to give an average monthly cost for whole of life insurance because, as already mentioned, there are so many factors such as age and other circumstances which play a role.

But, as an example, a healthy 30 year old individual could secure life cover for around £15 – £20 a month for a £150k end payout (note that the same applicant could get term cover for as little as £4 a month).

If the same individual applied for whole life cover 15 years later, regardless of whether they are still in good health at the age of 45, the monthly premiums are likely to rise to within the £35-40 a month realms.

Of course, this is just a rough example. If you want an accurate quote tailored to you and your circumstances, submit an enquiry and one of the expert advisors we work with will do all the work of finding you the best quote from every insurer in the UK and let you know the best policies to suit your needs.

The service we offer is free and there’s no obligation.

How to find affordable whole life insurance

The best way to ensure you get the most affordable and suitable whole of life insurance for your needs is to scour the entire market. This means you get the competitive deals from providers representing every sector of the insurance world.

While online comparison sites can be a good starting point, they often neglect to ask questions surrounding your personal circumstances – which, as we’ve established, play a key role in the cost of your whole life monthly premiums.

To avoid disappointment and ensure you get accurate, up-to-date quotes from the experts, contact us and we’ll refer you to one of the experts we work with.

All the insurance brokers we work with are independent financial advisors with access to insurance providers across the whole UK, so they are in the best place to be able to find the most competitively priced whole of life policies for you, no matter what your circumstances are.

Should I opt for low cost insurance?
Is there a cost estimator tool I can use online?

A quote for low cost whole life insurance should not be the sole reason you take out a policy. 

Bear in mind that you’re committing to this for the rest of your life, and is therefore not a decision that should be rushed into. So, while it’s great to find a cheap deal, it’s paramount that the cover is suitable for your needs.

Which is why it’s so important to discuss your options with an independent financial advisor.

No doubt you’ll find numerous online calculator tools for whole of life insurance online, but keep in mind that they will only return raw numbers with no context.

Speaking to an expert who has access to the entire market is a better alternative to punching numbers into an online calculator, as they can provide you with calculations bespoke to your needs and circumstances and offer you expert advice every step of the way.

Speak to an expert

To find the most competitive, suitable whole life insurance deals for your needs, get in touch. The experts we work with will take down your details, and provide you with a cost estimation of exactly what you can expect to pay for whole of life insurance.

You can either call us on 0808 189 0463, or contact us via our online form. We’ll match you with a whole of life insurance expert who will be able to provide you with accurate, real-time quotes, tailored to your particular needs and circumstances.

We offer whole-of-market comparison service, only work with accredited insurers, and we don’t charge a fee. And what’s more, you’re under absolutely no obligation after making an enquiry.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in whole of life insurance. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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