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How much does life insurance cost?

Anyone with children probably knows the difference having life insurance could make if the unthinkable happened, but that doesn’t mean everyone has done something about it.

Life insurance could be cheaper than you think

Video transcript
How much does life insurance cost?

Well possibly not as much as you may think! Typically, when thinking about life insurance, you work out how much money you may need to cover things like your mortgage, your bills, childcare for a certain number of years and the smaller things like food and petrol. You could then get a quote to see how much the monthly payments would be. If you’re on a tighter budget and know you need life insurance you could choose how much you could afford to pay each month, and see how much you’d get in return.

To apply for our family life insurance, you’ll need be aged 18 to 59 and would need to answer some health and lifestyle questions.

Let’s meet Mark and Anna.

Mark is 35 years old, doesn’t smoke and is in good health. He wants to leave about £250,000 to cover his mortgage and enable his family to carry on living as they are now. He’d like this cover over a 20 year term. To leave this amount of money he needs to pay about £15 a month. Mark also worries about getting ill and being able to meet his financial commitments, so he could add critical illness to his life insurance by paying around £11 each month. Critical Illness would mean that if he was diagnosed with a serious illness covered by the policy, 25% of the money would be paid out early. The balance would then be paid out if he later died within the term.

Anna is 38 years old and on a pretty tight budget. Anna is in good health and doesn’t smoke, she wants to pay an amount each month that’s comfortable for her and with premiums that remain fixed throughout the term. This is Guaranteed with our insurance! So she decides she’d like to pay around £10 per month for 10 years. This would give Anna just over £130,000 of cover if she died during the term.

So, as you can see, life insurance could be more affordable than you may have thought!

Get a quote today for your Family Life Insurance.

That’s another thing we’ve made straightfordable.

A survey* found that almost half of those aged 18-65 in the UK don’t have life cover. Of them, over a third said this was because they couldn’t afford it.

On digging a little deeper, the survey also revealed that the majority of these people either didn’t know how much life insurance actually cost or assumed they’d have to pay over £50 a month to get £100,000 of cover.

The reality could be more affordable than they think.

*Source for all research figures: Critical Research online poll, February 2014.

Family Life Insurance explained

SunLife’s Family Life Insurance provides a cash payout to help support your loved ones financially if you die.

  • You choose how long you’d like cover for – from 10 — 40 years as long as your cover ends by your 70th birthday
  • You choose how much you can comfortably afford to pay each month – from £5 per month. The amount you pay is set on day one and never changes
  • Or how much you’d like to be paid out if you died while you’re covered – up to £500,000 depending on your age and the premium you choose
  • You can choose to add Critical Illness cover – to get 25% of your payout early if you're diagnosed with a critical illness specified by the policy
  • If you die during the term, a cash payout is guaranteed — provided you always pay your premium when due

Family Life Insurance in action

Stay-at-home parents

To demonstrate how much life insurance might cost, we’ve created these examples for you. These are not real people, but the figures are correct based on the assumptions given. How much you pay and your cash payout will depend on your age and personal circumstances.

Cost of life cover: Anna with two young children

Meet Anna

Anna has a growing family to look after, so her budget is tight. She would like to take out life insurance for 10 years to cover the years her children are young. She can comfortably afford £10 a month. Anna is in good health and is a non-smoker.

Anna's scenario
Her age now 38
Her chosen monthly premium £10
Her chosen term 10 years
Smoker status Non-smoker
Total payout if she dies during the term £130,848
Life insurance quote for Anna aged 38

For the same £10 a month, Anna could also add critical illness cover to her policy. This would reduce her payout on death but give her some extra protection if she became ill. If she were diagnosed with a serious illness covered by her policy, 25% of the money would be paid out early. The balance would be paid out if she went on to die during the term.

Family Life Insurance with critical illness cover
Total payout for the same £10 premium, if she dies during the term £68,859
25% payout on diagnosis of an eligible critical illness during the term £17,215
Balance paid out if death also during the term £51,644

Cost of life cover: Mark, a young father

Meet Mark

Mark has just bought a new family home. He would like to take out life insurance to help his family pay the mortgage and maintain the way of life they enjoy, if he died while his children are still at school. Mark doesn’t smoke or have any health problems.

Mark's scenario
His age now 35
Smoker status Non-smoker
His chosen term 10 years
His chosen payout if he dies during the term £250,000
Monthly premium to pay £13.21
Life insurance quote for Mark aged 35

Mark could add critical illness cover to his life insurance by paying an extra £8.99 each month. So if he were diagnosed with a serious illness covered by his policy, 25% of the money would be paid out early. The balance would be paid out if he went on to die during the term.

Family Life Insurance with critical illness cover
Monthly premium with critical illness cover £22.20
25% payout on diagnosis of an eligible critical illness during the term £62,500
Balance paid out if death also during the term £187,500

What you need to know about SunLife's Family Life Insurance

Family Life Insurance is provided by Scottish Friendly.

If you don’t pay your premiums every month throughout the term, you won’t be covered any more and you won’t get any money back.

The amount of your payout will depend on your age, the premium and the term you choose and your answers to the health and lifestyle questions asked when you apply.

The payout is a fixed amount of money, so inflation will reduce how much it will buy in the future.

SunLife offers a range of straightforward and affordable products including over 50s life insurance, funeral plans, life insurance, pet insurance, car insurance, home insurance, ISAs and Will writing services.

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife? 

Phoenix Life Limited trades as SunLife and is the provider of the Guaranteed Over 50 Plan, SunLife Insurance and the life insurance policy payment option for Funeral Plans. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 1016269). Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is entered on the Financial Services Register (registration no. 110418). As part of SunLife’s commitment to quality service and security, telephone calls may be recorded.

SunLife Limited distributes financial products and services and is a company limited by shares, registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG (registered in England, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

You can contact us by post at SunLife, PO Box 1395, Peterborough, PE2 2TR or by phone on 0800 008 6060.

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan the funeral services are arranged and provided by Dignity Funerals Limited. Dignity Funerals Limited is a company registered in England and Wales No. 00041598. VAT registered No. 486 6081 14. 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands, B73 6AP. Telephone No. 0121 354 1557. Fax No. 0121 355 808. Part of Dignity plc. A British Company. Dignity are not regulated by the Financial Conduct Authority or the Prudential Regulation Authority but are registered providers with the Funeral Planning Authority.

Who provides the Funeral Plans?

The funeral services are arranged by a funeral director selected by Golden Charter Ltd. Golden Charter Ltd are not required to be authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority in relation to funeral plans but are registered providers with the Funeral Planning Authority.

If you choose to pay for your funeral in one go, with a single payment, you will have a contract with Golden Charter. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.

If you choose to pay for your funeral with a life insurance policy, the policy will be provided by AXA Wealth Ltd, trading as SunLife. The funeral services will be arranged by a funeral director selected by Golden Charter Ltd.

Who provides My Smarter (ISA)?

My Smarter (ISA) is provided by Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services register, registration No. 188832. Member of The Investment Association. Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.

Who provides the Will writing services?

Hugh James is authorised and regulated by the Solicitors Regulation Authority (SRA Number:303202).

The information contained on this website is based on Hugh James' understanding of the law of intestacy in England and Wales only as at April 2014. The law in Scotland and Northern Ireland is significantly different. This is for information purposes and is not intended to be legal advice.

Who provides Family Life Insurance?

SunLife Family Life Insurance is provided by Scottish Friendly Assurance Society Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Details can be found on the Financial Services register (registration number 110002). Registered Office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ. 

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.