Life Insurance Statistics

Is the UK prepared for the worst?

Esther Wolffowitz
by , Insurance Publisher

It might not be something that you want to consider, but life insurance plays an important role in planning for your family’s financial future. We explored all of the latest statistics to find out how prepared the UK is for death. After all, as Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes”.

The latest stats

How big is life insurance in the UK?

Life insurance falls under the broader category of protection insurance. Protection insurance includes life insurance but also other types of insurance such as income protection and serious illness insurance.

  • 25.2 million protection insurance policies in place in the UK in 2018.
  • 535,000 collective life policies – in addition to the 25.2 million protection policies already in place.
  • 2.1 million new collective and individual life policies taken out in 2017.
  • 12.1 million members of group life insurance cover of some form in the UK 2018.

357

authorised life insurance providers in the UK.

Protection policies in the UK

Year Protection Policies
2014 29,300,000
2015 28,600,000
2016 26,900,000
2017 25,700,000
2018 25,200,000

UK households

Life insurance is a way of providing for your family’s financial future after you have passed – but how prepared is the UK? We compared the number of households with mortgages to the costs of living.

  • 11.1m households in the UK have mortgages.
  • £124,732 average outstanding mortgage debt in August 2018.
  • £19,500 average price of household bills for a year.
  • £2,770 average food bill per house per year.
  • 42% of people with a mortgage have no life insurance in place.
  • £4,271 is the average funeral cost, more than double the cost than in 2004.

Only 50%

of households with mortgages have life insurance.

Life insurance payout

Each policy taken out is unique – but how often do insurers typically pay out for life insurance and how much?

  • £4.6 billion paid out in protection policies in 2016.
  • 138,000 customers received compensation from policies.
  • £12.5 million was paid out every day of 2016.
  • £33,000 the average pay out of protection insurance policies.

98%

of term life insurance claims were paid out in 2016.

Life insurance demographics

Taking out life insurance is completely voluntary – so who has life insurance and who doesn’t?

  • 2 million new individual and group protection products were taken out in 2016.
  • 8.5 million people are without life insurance.
  • 19% of consumers used to have life insurance but no longer do. (2011-2014)

1 million

fewer new protection policies in 2017 compared to 2014.

New protection policies each year

Year New policies
2014 3,000,000
2015 2,300,000
2016 2,100,000
2017 2,000,000

Sources used

    ABI
    Royal London
    The Money Charity
    More Than

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