Head of Content
Former Senior Protection Advisor
A £250,000 life insurance policy would be larger than the UK average, so it’s definitely a good idea to research the costs and payout potential for this amount of cover before beginning an application.
In this guide, you will learn all you need to know about £250,000 life insurance plans and can access quotes for them in seconds.
Is £250,000 life insurance coverage enough?
The answer to this question will vary, but there are rules of thumb when it comes to life insurance that can help you calculate whether £250k is enough coverage.
Carrying out any of the calculations below will give an idea of how much cover you need:
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Multiply your annual salary by the number of years your beneficiaries will be financially dependent on you after you have passed away
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Multiply your current annual salary by 10
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Add up all expenses and obligations you would need to cover for your family
According to the above guidelines, someone earning £25,000 per year would need life cover of £250,000 to ensure their family are well protected in their absence, but these rules of thumb only offer a rough indication of the types of policy that fits your needs.
Speak to an independent life insurance adviser for bespoke calculations.
How much does a £250k life insurance policy cost?
The average cost of a £250,000 life insurance policy at the time of writing (February 2025) is anywhere between £7.43 per month and £11.48 per month. This is based on a market comparison for a 30-year-old male with no existing health conditions or risk factors.
These figures are for a £250k life insurance policy that would cover you for 25 years, taken out on a level term basis, but keep in mind that premiums can vary dramatically.
The actual cost of your coverage will depend on a range of different factors, including your general health and the type of policy you choose. Read on to find out more…
Factors that will affect the cost of your insurance
The cost of a £250k life insurance policy will depend on the premium the insurer sets, and they will decide what to charge for it based on the following factors:
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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, so expect the costs to rise if you are taking out cover for more than £250k.
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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 £250k life insurance policy.
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Policy type: Level plans have more expensive premiums than decreasing policies, while whole-of-life, over-50s and increasing term insurance tend to be even higher.
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Gender: Life insurance is slightly cheaper for women compared to men.
How age will affect your premiums
The table contains example figures to illustrate how the cost of a £250,000 life insurance agreement will increase in line with the age of the policyholder.
|
Age |
Monthly Premium |
|
20 |
£4.92 |
|
25 |
£5.65 |
|
30 |
£8.24 |
|
35 |
£11.26 |
|
40 |
£16.25 |
|
45 |
£24.96 |
|
50 |
£40.49 |
These figures are quotes from a leading UK insurance provider. They are presented here for example purposes and may not be representative of what you would qualify for.
How much more more will smokers pay
The exact amount extra smokers will pay for a £250,000k life insurance policy compared to a non-smoker will vary depending on factors such as how many cigarettes you typically smoke per day and whether you have underlying health problems or a family history of them.
For comparison purposes: the average cost of a 25-year life insurance policy that provides £250k of coverage for a non-smoker is between £7.43 per and £11.48 per month, while the average cost for a smoker is between £12.85 and £22.85 per month.
How to get a £250k life insurance quote online
The best way to get a bespoke quote for a £250,000 life insurance policy is to have a whole-of-market life insurance adviser, like us, draw them up for you.
We are on panel with every insurer in the UK, which means we can advise on their products and often have access to exclusive deals from them. When we compile quotes for you, the deals we highlight will be personalised recommendations from across the entire market.
You will be presented with options from mainstream insurance providers as well as specialist insurers for those with complex needs, and we will offer expert advice on which to choose.
Get started with a free, no-obligation chat and access your quotes below:
Get your £250k life insurance quotes today
How much a £250k life insurance policy pays out
The amount a £250,000 life insurance plan will pay out will depend on the policy type you opt for. A level term policy will pay out the full £250,000 regardless of when you pass away during the agreement, while a decreasing or increasing term plan will pay out differently.
Decreasing term cover
The table below shows how much a decreasing term policy for £250k will typically pay out depending on which year of coverage you pass away during:
|
Year of Coverage |
Amount Paid Out |
|
Year 1 |
£232,743 |
|
Year 2 |
£214,105 |
|
Year 3 |
£193,976 |
|
Year 4 |
£172,236 |
|
Year 5 |
£148,758 |
|
Year 6 |
£123,401 |
|
Year 7 |
£96,016 |
|
Year 8 |
£66,440 |
|
Year 9 |
£34,498 |
|
Year 10 |
£0 |
We have compiled these figures based on a policy with a 10-year term length that decreases by 8% each year. The exact rate that your policy will decrease by may vary.
Increasing term cover
The table below shows how much an increasing term life insurance policy will pay out over the course of 10 years, depending on when the policyholder passes away.
|
Year of Coverage |
Amount Paid Out |
|
Year 1 |
£261,250 |
|
Year 2 |
£273,006 |
|
Year 3 |
£285,291 |
|
Year 4 |
£298,129 |
|
Year 5 |
£311,545 |
|
Year 6 |
£325,564 |
|
Year 7 |
£355,523 |
|
Year 8 |
£371,521 |
|
Year 9 |
£388,239 |
|
Year 10 |
£405,710 |
The above figures are based on a policy with a payout that increases by 4.5% each year to remain above current inflation levels. The amount yours increases by may vary.
Why choose Teito for your £250k life insurance quote?
Our whole-of-life insurance brokers are well placed to help you find the most competitive quotes for your £250k life insurance policy.
Here are just some of the reasons our customers choose us:
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We are on panel with every insurer in the UK
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Our advisers can access exclusive life insurance deals
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We are 5-star rated on leading review websites
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You can access your bespoke quotes in seconds
Ready to take advantage of a free, no-obligation chat with a whole-of-market life insurance adviser to access your personalised quotes today? Get started here.
FAQs
Whole-of-life insurance has more expensive premiums than standard life insurance, with £250k policies starting at around £8 per month, but at the other end of the scale, for applicants with more complex needs, they can rise to much higher than this.
The exact amount at £250k whole of life insurance plan will cost will depend on the age of the applicant, their health and lifestyle, and the policy type.
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.