There is no standard price for UK mortgage life insurance, so a personalised quote is needed to see what you may pay.
Age, health, smoking, cover amount, policy term and level versus decreasing cover all affect the premium.
This article explains how quotes are priced and how to compare the monthly cost with the protection you actually get.
Mortgage Life Insurance
There is no standard price for mortgage life insurance in the UK.
Your premium is calculated using information about you, the amount
of protection you want, how long you want it for and the type of
policy you choose.
For the broader mortgage protection picture, see our
complete UK guide to mortgage life insurance
and
how much life insurance you may need for a mortgage.
Two homeowners with identical mortgages can therefore receive very different
life insurance quotes.
Your age, health, smoking or nicotine use, medical history, occupation and
lifestyle can all affect the insurer’s assessment. So can the amount of
cover, policy term and whether your protection is level or decreasing.
For mortgage protection, decreasing term life insurance often costs less
than an otherwise comparable level term policy because the amount of insurance
reduces during the policy term.
But choosing life insurance based only on the lowest monthly premium can
leave you with protection that does not match the financial need you were
trying to cover.
This guide explains how life insurance premiums are calculated, which factors
can increase or reduce the cost, the differences between level and decreasing
cover, how health and smoking affect underwriting, and how to compare price
and value under the latest FCA rules.
Last reviewed: 19 August 2026
Written by: Assura Protect editorial team, Assura Financial Limited
Why is there no standard price for mortgage life insurance?
Life insurance is individually priced.
When you apply, the insurer assesses the likelihood that it could need to
pay a claim during the period you want to be insured.
It also considers how large that potential claim could be and how long the
insurer is taking on the risk.
Compare two homeowners
| Factor | Applicant A | Applicant B |
|---|---|---|
| Mortgage | £300,000 | £300,000 |
| Age | 28 | 48 |
| Smoking status | Non-smoker | Smoker |
| Health | No significant disclosed conditions | Medical history requiring underwriting assessment |
| Occupation | Office based | Higher-risk occupation |
| Cover requested | £300,000 | £300,000 |
The mortgage is identical, but the insurer is assessing two different risks.
Their premiums would therefore not necessarily be the same.
Is there an average cost of life insurance in the UK?
You may see average premium figures online, but they should be interpreted carefully.
On 29 July 2026, Legal & General published an average-cost guide
and reported an average monthly life insurance premium of:
£26.33 per month
based on its own 2025 customer figures. This is provider-specific data
rather than a UK-wide market average and should not be treated as a quote.
L&G itself warns that paying the average amount does not mean somebody
necessarily has the right level of protection.
Why averages can be misleading
An average mixes together people with different:
- ages;
- mortgage sizes;
- amounts of cover;
- policy terms;
- health circumstances;
- smoking status;
- policy types.
It therefore cannot tell you what your own life insurance should cost.
How does age affect life insurance cost?
Age is one of the major factors used when calculating life insurance premiums.
Royal London’s June 2026 underwriting guidance explains that premiums will
generally be higher when somebody applies at an older age because the likelihood
of death occurring during the insured period increases.
Does that mean you should buy insurance as early as possible?
Not simply for the sake of obtaining a low premium.
First establish whether you actually have a protection need.
Common reasons for reviewing life insurance include:
- buying a home;
- taking a mortgage;
- having children;
- marriage or civil partnership;
- other people becoming financially dependent on you.
If the protection is genuinely required, waiting several years normally means
applying at an older age and potentially with different health circumstances.
How does health affect the cost of mortgage life insurance?
Your health and medical history can affect both:
- whether an insurer is willing to offer the requested protection; and
- the premium or other terms offered.
You may be asked about:
- current medical conditions;
- previous diagnoses;
- medication;
- hospital treatment;
- operations;
- mental health history;
- family medical history.
Having a medical condition does not automatically mean that life insurance
will be unavailable.
Depending on the circumstances and insurer, an application could be:
- accepted on standard terms;
- accepted at a higher premium;
- subject to different terms;
- subject to further medical evidence;
- postponed;
- declined.
Royal London’s current guidance confirms that health and family medical
history can influence pricing and, in some cases, availability.
Does your weight or BMI affect life insurance premiums?
It can.
Insurers may ask for your height and weight as part of their underwriting
assessment.
Royal London’s June 2026 guidance identifies BMI as one factor that can
affect premiums because unusually high or low BMI can be associated with
certain health risks.
BMI is only one part of an underwriting assessment and should not be assumed
to determine the final premium by itself.
How does smoking or nicotine use affect life insurance cost?
Smoking and nicotine use can have a significant effect on life insurance pricing.
Insurers ask about smoking because tobacco and nicotine use can be associated
with increased health risks.
The definition of a smoker or non-smoker can vary between insurers and products.
For example, Royal London’s current consumer guidance says it asks whether
an applicant has used nicotine or nicotine-replacement products during the
previous 12 months when determining smoker status for its underwriting.
Can alcohol consumption affect life insurance premiums?
Potentially.
Insurers may ask about alcohol consumption when assessing health and lifestyle risk.
Royal London’s current underwriting guidance identifies alcohol consumption
as one of the lifestyle factors that can affect an insurer’s assessment.
Normal social drinking does not automatically mean somebody will pay a
higher premium. The underwriting effect depends on the answers provided,
associated health circumstances and insurer criteria.
Can your occupation affect mortgage life insurance cost?
Yes.
Some occupations involve a greater risk of serious injury or death than others.
MoneyHelper and current insurer guidance both list occupation as a potential
pricing factor.
The insurer may ask about:
- your job title;
- your actual duties;
- working at height;
- working offshore;
- military duties;
- dangerous machinery;
- other occupational hazards.
A higher-risk occupation does not automatically mean life insurance is unavailable.
Can hobbies and activities increase the price?
Potentially.
Royal London’s current guidance gives activities such as skydiving,
motor racing and climbing as examples of hobbies that can affect underwriting.
Other insurers may assess different activities using their own criteria.
You may be asked about:
- the activity;
- how frequently you participate;
- your experience;
- where you take part;
- the level or type of activity.
How does the amount of life insurance affect the premium?
All other things being equal, asking an insurer to provide a larger potential
benefit will generally cost more than asking it to provide a smaller one.
This is why the first question should not be:
“What is the maximum amount of life insurance I can buy?”
It should be:
“What financial need am I trying to protect?”
For homeowners, the calculation can include:
- mortgage balance;
- other debts;
- dependants;
- income replacement;
- existing life insurance;
- workplace benefits;
- savings and suitable assets.
How does the length of the policy affect cost?
The period for which you ask an insurer to provide protection is another
important pricing factor.
Royal London’s June 2026 guidance identifies term length as one of the factors
affecting life insurance premiums.
In general, a longer insured term means the insurer is providing protection
for a longer period.
Mortgage example
If your mortgage has:
- 12 years remaining;
a 12-year mortgage-protection need is different from asking for:
- 40 years of protection.
However, choosing a shorter term solely to reduce the premium could create
a protection gap if the policy expires while you still have a mortgage or
dependants.
Which usually costs less: level or decreasing term life insurance?
Decreasing term life insurance will often cost less than otherwise
comparable level term protection.
This is because the amount insured under decreasing cover falls during
the policy term.
Assura Protect’s current Term Life page states that its Decreasing Term
Assurance premiums tend to be lower because the amount of cover reduces
over time.
Royal London’s June 2026 guidance and Legal & General’s July 2026
cost guide make the same general distinction.
| Feature | Level term | Decreasing term |
|---|---|---|
| Amount of cover | Normally stays fixed | Reduces over time |
| Typical relative premium | Often higher | Often lower |
| Common mortgage use | Interest-only mortgages or wider family protection | Repayment mortgages |
| Potential benefit later in policy | Normally remains fixed | Lower than at outset |
The cheaper option is not automatically the better option.
Read:
Level vs Decreasing Term Life Insurance for a Mortgage
How does your mortgage type affect the life insurance you should compare?
The mortgage structure affects which insurance structure you may need,
which in turn can affect price.
Repayment mortgage
The capital should gradually fall as scheduled repayments are made.
Decreasing cover may therefore be worth considering where the main objective
is protecting that reducing debt.
Interest-only mortgage
Capital may remain largely outstanding until the repayment event or maturity.
Level cover may therefore be more closely aligned with that liability.
Because level insurance maintains a larger amount of protection than an
otherwise comparable decreasing policy later in the term, the price can also
be higher.
Read:
Life Insurance for Repayment vs Interest-Only Mortgages
Does joint life insurance cost less than two single policies?
It can.
Current MoneyHelper and Legal & General guidance indicates that a joint
first-death policy can often cost less than purchasing two comparable
individual policies.
But the protection is also different.
A typical joint first-death policy:
- covers two people;
- normally pays once following the first valid insured death;
- then normally ends.
Two single policies can potentially provide one benefit under each policy.
It is therefore misleading to compare the premiums without comparing the
potential benefits and continued protection.
Does adding critical illness cover increase the cost?
Yes, adding additional insured protection such as critical illness cover
can increase the overall premium.
Critical illness protection addresses a different risk from life insurance.
It can provide a benefit following a qualifying diagnosis that meets the
relevant policy definition.
The cost can depend on:
- age;
- health;
- medical history;
- smoking status;
- amount of critical illness cover;
- policy term;
- benefits and features included;
- underwriting criteria.
Do not compare a life-only quote directly with a life-and-critical-illness
quote as though they provide the same protection.
What happens during life insurance underwriting?
Underwriting is the process the insurer uses to assess the application and
determine the terms on which it can offer protection.
You may be asked about:
- age;
- height and weight;
- medical conditions;
- medication;
- family medical history;
- smoking and nicotine;
- alcohol;
- occupation;
- sports and hobbies;
- other risk information relevant to the application.
Depending on the insurer’s assessment, the final terms may differ from an
early indicative quote.
Why accurate answers matter
Answer every question accurately and completely to the best of your knowledge.
Do not omit material information simply because you think it will make the
premium higher.
Will you need a medical examination?
Not every life insurance application requires a medical examination.
Depending on the amount of protection requested and the information provided,
an insurer may be able to make a decision from the application alone.
In other cases it may request further evidence, which could include information
from a medical professional or additional medical assessment.
The process differs between insurers and individual applications.
Monthly premium vs total cost over the policy term
A monthly premium can look small in isolation.
It can therefore be useful to understand the long-term commitment as well.
Illustrative example only
| Monthly premium | Policy term | Illustrative premiums paid if maintained for full term |
|---|---|---|
| £10 | 20 years | £2,400 |
| £20 | 25 years | £6,000 |
| £30 | 30 years | £10,800 |
| £40 | 35 years | £16,800 |
These figures are simple arithmetic examples, not actual quotations.
They assume an unchanged monthly premium and full payment throughout the
stated term.
Term life insurance is protection rather than a savings account.
Paying premiums for the whole term does not normally create a maturity
payment simply because no claim occurred.
How can you keep mortgage life insurance affordable?
The objective should not be to make the premium as low as possible regardless
of the consequences.
Instead, aim to obtain protection that addresses your important needs within
a sustainable budget.
Ways to assess affordability include:
-
Calculate the protection gap first.
Do not automatically insure more than the amount required for your
identified financial needs. -
Check existing protection.
Personal policies and workplace death-in-service benefits may already
meet part of your need. -
Compare level and decreasing protection where appropriate.
Decreasing cover can be cheaper where the main objective is a reducing
repayment mortgage. -
Choose an appropriate term.
Avoid paying for substantially more years than you need, but do not
create a gap by ending the policy too early. -
Compare benefits as well as premiums.
A lower premium may reflect a different amount or structure of protection.
-
Keep protection sustainable.
A policy that becomes unaffordable and is cancelled may not achieve
its intended purpose.
Is life insurance cheaper when you are younger?
All other things being equal, younger applicants will often receive lower
premiums than otherwise comparable older applicants because age is a major
underwriting factor.
But this should not be interpreted as a reason to buy unnecessary protection.
A better approach is:
- identify when a genuine protection need arises;
- determine the appropriate amount and term;
- obtain suitable quotes at that point.
Buying a home and taking on a mortgage is one common event that causes people
to reconsider their life insurance needs.
Can stopping smoking reduce future life insurance costs?
Potentially.
Smoking status can materially affect underwriting.
If you later stop smoking or nicotine use, an insurer may apply its own rules
about when you can be treated as a non-smoker for a new application or policy
change.
Royal London’s current guidance, for example, uses a 12-month nicotine-free
period for the smoker-status approach described on its consumer page.
Other insurers may use different definitions or evidence requirements.
Should you replace an expensive existing life insurance policy?
Not automatically.
An existing policy may have been underwritten when you were:
- younger;
- in different health;
- in a different occupation;
- under different insurer criteria.
A replacement policy is generally assessed using your circumstances at
the time you apply for replacement.
Compare:
- current premium;
- new premium;
- insured amount;
- remaining term;
- level or decreasing structure;
- existing exclusions or special terms;
- new exclusions or special terms;
- additional benefits;
- underwriting outcome.
The FCA’s current Pure Protection Market Study is specifically examining
incentives that could encourage unnecessary policy switching.
Will life insurance cost more when you remortgage?
Remortgaging itself does not automatically change the premium on a separate
fixed-premium policy.
But your protection requirement may change if the remortgage involves:
- more borrowing;
- a longer term;
- different repayment structure;
- another person being added;
- additional benefits being required.
Increasing protection can increase the premium.
Replacing the policy altogether can also produce a different premium because
you are now applying at your current age and health.
Read:
Do I Need to Change My Life Insurance When I Remortgage?
Cheapest life insurance vs suitable life insurance
Price is important, but price and value are not identical.
Compare at least:
| Compare | Why it matters |
|---|---|
| Monthly premium | Must fit a sustainable household budget |
| Amount of cover | Determines the potential insured benefit |
| Policy term | Determines how long protection lasts |
| Level vs decreasing | Determines whether the insured amount falls |
| People insured | Single and multi-life structures can behave differently |
| Exclusions and limitations | Can affect when a benefit is payable |
| Additional benefits | Policies may include materially different features |
| What happens after a claim | Particularly relevant to multi-life or critical illness structures |
A £12 monthly policy is not necessarily better value than a £15 policy
if the two provide materially different protection.
Latest FCA rules on life insurance price and value in 2026
Price, affordability and value are receiving particular regulatory attention
in the pure-protection market.
1. Price information must be understandable
FCA ICOBS 6.4 applies to pure-protection contracts.
Current rules require firms to provide price information in a way calculated
to help customers relate the cost to their regular budget.
Current FCA guidance also identifies price information alongside significant
benefits, exclusions, limitations and duration as one of the main characteristics
consumers need in order to make an informed decision.
2. Updated suitability guidance — 26 June 2026
FCA pure-protection suitability guidance was updated on
26 June 2026.
Where advice is provided, firms should assess relevant customer demands
and needs and consider matters including:
- existing insurance cover;
- level of cover;
- cost;
- relevant exclusions;
- limitations;
- policy conditions.
Where relevant needs remain unmet, customers should be informed.
This makes it particularly inappropriate to treat the lowest available
monthly premium as the only factor in an advised protection recommendation.
3. Eligibility guidance — 27 July 2026
FCA guidance updated on 27 July 2026 says firms should
take reasonable steps to ensure customers only buy policies under which
they are eligible to claim the relevant benefits.
A cheap policy that does not provide meaningful eligible benefits for the
customer’s circumstances does not solve the protection problem simply because
its premium is low.
4. Consumer Duty: price and value
The FCA continues to identify the Consumer Duty price-and-value outcome as
an important area of supervisory focus.
The FCA says firms should use robust analysis when assessing fair value and
take action where products are not providing appropriate value.
5. FCA Pure Protection Market Study — latest position
The FCA published interim findings from its Pure Protection Market Study on
29 January 2026.
The study covers products including:
- term life assurance;
- critical illness cover;
- income protection;
- whole-of-life insurance.
The FCA said that pure-protection distribution works well in many respects
and noted that the costs of protection had remained stable in recent years.
It also said it had seen examples of firms delivering good value.
However, the FCA continues to investigate issues including:
- the protection gap;
- claims ratios;
- intermediary incentives;
- unnecessary policy switching;
- claims experience.
The FCA reported that:
- 58% of adults do not hold a pure-protection product;
-
among those without protection,
59% had never considered their protection needs.
These figures describe a protection and awareness gap. They do not mean
that 58% of people need life insurance, or that any individual applicant
should buy a particular product.
Affordability is one of the issues the FCA identified as contributing to
the protection gap.
As at 19 August 2026, the FCA’s January interim report remains the latest
report displayed on its official Pure Protection Market Study page.
The FCA currently says its final report is intended for Q3 2026.
What if the amount of life insurance you want is outside your budget?
MoneyHelper’s current guidance says that where someone cannot afford to
protect everything they would ideally like to cover, they can consider
prioritising their needs or choosing a lower level of protection.
For mortgage protection, priorities might include:
-
Essential mortgage protection
Identify the amount required to deal with all or part of the mortgage.
-
Essential family income
Consider what dependants would need beyond mortgage repayment.
-
Other important debts
Identify liabilities you want the household to be able to manage.
-
Additional protection
Consider wider objectives after core needs have been addressed.
Do not deliberately provide inaccurate health or lifestyle information in
an attempt to reduce the premium.
It is better to adjust the amount or structure of protection honestly than
to risk problems with the validity of a future claim.
What information should you have before getting a mortgage life insurance quote?
Preparing the information in advance can make it easier to compare equivalent
protection.
- Current mortgage balance
- Remaining mortgage term
- Repayment or interest-only structure
- Amount of life cover required
- Desired policy term
- Date of birth
- Height and weight
- Smoking and nicotine information
- Relevant medical history
- Current medication
- Family medical history where requested
- Occupation
- Relevant hobbies or activities
- Existing life insurance
- Workplace death-in-service benefits
- Whether another person also needs protection
Make sure you compare quotes using the same amount, term and broad type of
protection. Otherwise a lower premium may simply reflect less cover.
Mortgage life insurance costs with Assura Protect
Assura Protect does not publish one standard premium that applies to every
Term Life customer because individual cover is subject to eligibility and
underwriting.
According to Assura Protect’s current live Term Life product information:
- both Level Term Assurance and Decreasing Term Assurance are available;
-
the maximum published amount of Term Life protection is currently up
to £1,000,000, subject to age, health and underwriting criteria; - the maximum published policy term is currently 50 years;
-
policies are available from age 18, with new cover currently available
up to the day before the applicant’s 70th birthday, subject to the
published eligibility rules; - the policy must currently end before the insured person’s 90th birthday;
-
Level Term premiums and cover remain level under the current product
structure unless cover is changed; -
Decreasing Term premiums are also fixed under the current product structure,
while the insured amount reduces; -
Assura states that Decreasing Term premiums tend to be lower because
the insured amount reduces over time; -
premiums are fixed for the entire policy term unless you choose to
change your cover; -
Term Life policies have no cash or surrender value and provide no life
benefit simply because the insured person survives beyond the policy term.
The premium offered to an individual depends on their application and
underwriting assessment.
The appropriate policy should therefore be judged by both the protection
provided and whether the premium is sustainable for the household budget.
Frequently asked questions about mortgage life insurance costs
How much is mortgage life insurance per month?
There is no standard monthly premium. Your cost depends on factors such
as age, health, smoking status, amount of cover, policy term, occupation
and policy type. A personalised quote is required to establish the price
available for your circumstances.
What is the average cost of life insurance in the UK?
There is no single official market-wide average that reliably predicts
what an individual will pay. Legal & General reported an average
monthly premium of £26.33 based on its own 2025 customer figures.
This is provider-specific data rather than a UK-wide market average
and should not be treated as a quote.
Is mortgage life insurance expensive?
It depends on the applicant and protection requested. Some people can
obtain relatively inexpensive cover, while age, health, smoking or
higher amounts and longer terms can increase premiums.
Why is my life insurance quote higher than someone else’s?
Insurers assess individual risk. Age, health, medical history, smoking,
weight, occupation, hobbies, cover amount, policy type and term can all
mean two people receive different premiums.
Is decreasing life insurance cheaper than level life insurance?
It will often be cheaper than otherwise comparable level protection
because the amount of insurance reduces over the term. However, it also
provides less protection later in the policy and may not suit every
mortgage or family-protection need.
Does a bigger mortgage make life insurance more expensive?
Potentially. If a bigger mortgage causes you to request a larger amount
of life insurance, the premium can increase. The appropriate amount of
protection should still be based on your wider needs and existing resources.
Does a longer mortgage make life insurance more expensive?
A longer protection term can affect the premium because the insurer is
providing cover for longer. Do not shorten the insurance term purely
for price if doing so would leave an important financial commitment
unprotected.
Does life insurance cost more when you are older?
Generally, age is an important underwriting factor and otherwise comparable
cover tends to cost more when taken out at an older age.
Does smoking increase life insurance premiums?
It can significantly affect pricing. Insurers have their own definitions
and questions about tobacco, vaping, nicotine and nicotine-replacement
products, so answer the application questions accurately.
Does vaping count as smoking for life insurance?
Insurer definitions differ. Some insurers ask about any nicotine use,
including vaping or nicotine-replacement products, rather than only
cigarettes. Answer the wording on your application rather than making
your own assumption about smoker status.
Can a medical condition increase life insurance cost?
Potentially. The insurer may assess the condition, treatment, severity
and wider health information. Depending on its underwriting criteria,
this can affect the premium or other terms offered.
Do I pay Insurance Premium Tax on life insurance?
Current HMRC guidance states that life insurance is exempt from Insurance
Premium Tax. Different rules can apply to mixed contracts containing
taxable general-insurance elements.
Are life insurance premiums fixed?
This depends on the policy. Assura Protect’s current Term Life product
uses fixed premiums for the policy term unless the customer chooses to
change the cover. Check the terms of any product you are considering.
Does the premium fall on decreasing life insurance as the cover falls?
Not necessarily. Under many decreasing policies the insured amount falls
while the contractual premium remains fixed. Assura Protect’s current
Decreasing Term Assurance uses this structure.
Is joint life insurance cheaper than two single policies?
It can be, but a typical joint first-death policy normally provides one
life benefit and then ends, whereas two single policies can potentially
provide separate benefits. Compare the protection as well as the price.
Does adding critical illness cover increase life insurance cost?
Additional critical illness protection generally increases the overall
premium because it covers another insured risk. Compare the additional
benefits, definitions and limitations as well as the extra cost.
Can I reduce the cost by taking less life insurance?
A lower amount of protection can reduce the premium, but make sure the
resulting cover still addresses the financial need you are trying to
protect. If affordability is limited, identify and prioritise essential
protection rather than choosing an arbitrary low amount.
Can I reduce my life insurance cost after I stop smoking?
Potentially, but insurer rules differ. A new policy or permitted policy
change would also be assessed using your current age, health and other
underwriting information, so do not assume the total premium will
automatically fall.
Should I replace my existing life insurance if I find a cheaper quote?
Not automatically. Compare cover amount, term, benefits, exclusions and
underwriting terms. Ensure any appropriate replacement protection is
actually in force before cancelling established cover you still need.
Does remortgaging change my life insurance premium?
A separate fixed-premium policy does not normally change simply because
the mortgage lender or mortgage rate changes. However, increasing your
protection or replacing the policy following a remortgage can result in
a new premium.
Continue exploring mortgage life insurance
This article forms part of the Assura Protect Mortgage Life Insurance guide series.
Sources and regulatory references
This article has been researched using current FCA rules, HMRC guidance,
government-backed consumer guidance and current UK insurer information.
-
MoneyHelper – How to know what kind of protection insurance you need
-
MoneyHelper – What is life insurance?
-
FCA Handbook – ICOBS 5: Identifying client needs and advising
-
FCA Handbook – ICOBS 5.3: Pure-protection suitability
-
FCA Handbook – ICOBS 6.4: Pure-protection product and price information
-
FCA – Pure Protection Market Study
-
FCA – Pure Protection Market Study interim findings
-
FCA – Consumer Duty focus areas: price and value
-
Royal London – What factors affect the cost of life insurance?
-
Legal & General – Average cost of life insurance, 29 July 2026
-
GOV.UK – Insurance Premium Tax
-
HMRC – Notice IPT1: Insurance Premium Tax
-
Assura Protect – Term Life Insurance
-
Assura Protect – Regulatory Information