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Former Senior Protection Advisor
A £100,000 life insurance policy would not be considered a substantial amount of coverage, but it pays to do your research before you apply for one.
In this guide, you will learn what the average cost is for a plan of this size, how much it is likely to pay out and how we can help you get the best deal.
How much does a £100k life insurance policy?
The average cost of a £100k life insurance policy right now (January 2025) is between £3.88 and £4.60 per month, depending on whether you choose level or decreasing coverage.
These figures represent the typical cost of a 25-year plan and were calculated based on the applicant being a 35-year-old male with no health conditions or serious risk factors.
The exact cost of a £100k life insurance plan can, however, vary dramatically based on a range of factors that we will explore in this article.
Factors that affect the cost of your policy
The exact cost of a £100,000 life insurance plan will depend what kind of premium the insurer decides to charge, and they will work this out based on the following variables:
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Age: The older you are, the more your coverage is likely to cost.
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Amount of coverage: Higher amounts tend to have more expensive premiums, which is why the monthly cost for a conservative amount like £100k is relatively low.
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Health and lifestyle: Having underlying health conditions can drive up the cost, as can lifestyle choices such as drinking regularly and smoking. Having high risk hobbies such as scuba diving and rock climbing can also drive up your premium.
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Occupation: Working in a high risk occupation, like the fire brigade or the military, can increase your premium and drive up the cost of a £100k life insurance policy.
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Policy type: Level plans have more expensive premiums than decreasing policies, while whole-of-life and over-50s life insurance tend to be even higher.
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Gender: Life insurance is slightly cheaper for women compared to men.
Your insurance provider will ask you a series of questions about the above factors to determine what premium to charge. A medical would only usually be required for a conservative amount like £100k if you declare an underlying health condition and don’t have up-to-date information (usually from the last six months) about it in your medical records.
How age affects the cost of your policy
The table below shows how the cost of a £100,000 life insurance plan will increase the older you get. These figures are based on quotes from a mainstream insurance provider:
|
Age |
Monthly Premium |
|
20 |
£3.50 |
|
25 |
£4.36 |
|
30 |
£5.76 |
|
35 |
£8.15 |
|
40 |
£11.89 |
|
45 |
£19.91 |
|
50 |
£30.30 |
These figures are purely for example purposes to give you an idea of the kind of increments your premiums might rise by - speak to a broker for bespoke prices.
How much more will it cost for smokers?
There’s no definitive answer for how much more a £100k life insurance policy will cost for a smoker vs. a non-smoker as so many variables are taken into account by the insurer. For example, your age and whether you have any health conditions will be taken on board.
On average, however, smokers can expect premiums that are anywhere between a few percentage points and up to around 30% higher than non-smokers.
Whole-of-life insurance costs
A £100k whole-of-life insurance policy will cost more than a standard life policy with a limited term. At the time of writing, the average cost for whole-of-life cover for this amount is around £50.60 per month, but this can vary depending on health, age, lifestyle and other factors.
Get your £100k life insurance quotes today
How much a £100k life insurance policy pays out
A standard £100,000 life insurance policy will pay out exactly this amount if taken out on a level term basis and the policyholder dies within the agreed term.
If taken out on a decreasing term, the amount your plan pays out to your beneficiaries will decrease the further into the term you get. The table below shows how much a decreasing £100k life insurance policy would pay out in each year of a 25-year term.
|
Year of Coverage |
Amount Paid Out |
|
Year 1 |
£98,632 |
|
Year 2 |
£97,155 |
|
Year 3 |
£95,559 |
|
Year 4 |
£93,836 |
|
Year 5 |
£91,975 |
|
Year 6 |
£89,965 |
|
Year 7 |
£85,450 |
|
Year 8 |
£82,919 |
|
Year 9 |
£82,919 |
|
Year 10 |
£80,184 |
|
Year 11 |
£77,231 |
|
Year 12 |
£74,042 |
|
Year 13 |
£70,597 |
|
Year 14 |
£66,877 |
|
Year 15 |
£62,859 |
|
Year 16 |
£58,520 |
|
Year 17 |
£53,834 |
|
Year 18 |
£48,773 |
|
Year 19 |
£43,307 |
|
Year 20 |
£37,403 |
|
Year 21 |
£31,028 |
|
Year 22 |
£24,142 |
|
Year 23 |
£16,705 |
|
Year 24 |
£8,674 |
|
Year 25 |
£0 |
The above figures are based on a decreasing term policy that falls by 8% per year but the exact percentage that your policy decreases by may vary.
Get a £100k life insurance quote today
The best way to get a bespoke quote for £100,000’s worth of life insurance is through an independent life insurance adviser, like the ones we have on our team.
Our brokers have access to the entire life insurance market and can source you a range of tailored quotes instantly, and then advise you on which deal best fits your needs.
They will compare the deals available from mainstream life insurance providers with specialist insurers that may be a viable option if you are a higher risk applicant to ensure every base is covered and you end up with the ideal cover for you and your family.
Get started here to book a free, no-obligation consultation with one of our advisers and get your bespoke £100,000 life insurance quotes today.
FAQs
No. Guaranteed life insurance for over 50s is typically for smaller amounts of cover than £100,000. At the time of writing, the highest amount of cover available for this product type is £23,586, but over 50s can apply for £100,000 plus cover on a standard life insurance plan.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.