Rates verified 5 May 2026 against regulated industry sources. (See full methodology.)
Needs analysis · Debts + income replacement + childcare + final expenses · Pence-precision maths
This calculator estimates your protection needs based on transparent rules of thumb. It's a starting point — not personalised financial advice. For advice tailored to your circumstances, consult an FCA-regulated financial adviser.
Estimate based on your inputs. Not a quote, not a recommendation, not regulated advice.
Step 1 — About you
If joint, we'll calculate cover for the income you contribute.
Step 2 — Debts to clear
Outstanding balance, not original loan amount.
UK funeral costs average £4,000–£8,000.
Step 3 — Income replacement
5–10 years for a partner, 15–20 if children are very young.
Payout invested while drawn down — this real return reduces the lump sum needed.
Step 4 — Children and care costs
Used to estimate years of childcare/education ahead.
UK undergraduate degrees cost roughly £30,000–£50,000 in 2026 incl. living costs.
Step 5 — Existing cover and assets
Many UK employers provide 2×–4× salary. Check your benefits statement.
Recommended additional cover
£699,804
On top of your existing £10,000 of cover and assets
This is a needs estimate based on the figures you entered. Not a recommendation or quote.
Total protection need
£709,804
You already have
£10,000
Gap to fill
£699,804
Illustrative monthly premium: A healthy 38-year-old non-smoker might pay roughly £56–£105/month for £699,804 of 25-year level-term cover. Actual premiums vary 5–10× based on health, smoking history, term length, and provider. Get quotes from multiple providers.
This figure is a starting point for conversations with a broker or adviser. Actual cover needs depend on factors this calculator can't capture — your health, employer death-in-service benefits, partner's earning capacity, and family circumstances. Take this number to an FCA-regulated adviser for a tailored recommendation.
How much life insurance do you actually need in the UK?
It's the question every parent asks. Common rules of thumb — 5× salary, 10× salary, or 25× annual essential expenses — are simple, but they ignore your actual situation. A needs-based calculation works backwards from what your dependants would need: clearing the mortgage, replacing your income for X years, funding childcare and education, and covering final expenses. The calculator above runs that math on the figures you enter, then nets off existing life insurance, employer death-in-service, and liquid savings to give you a recommended cover gap. Note that this assumes you want life cover (paying out on death). Income protection — which pays out if you can't work — is a separate need. Use your Take-home Pay Calculator output to make sure your annual income figure is realistic.
Term life vs whole-of-life — which is right?
Term insurance pays out only if you die during the policy term, typically 20–30 years. It's cheap, simple, and designed to protect dependants while children are young and the mortgage is being paid off. Whole-of-life insurance pays out whenever you die, but costs roughly 5–10× more — it's usually only worth it for inheritance tax planning where the policy is written in trust to pay an expected IHT bill. Most UK families with children buy 25-year level-term life insurance pegged to their mortgage and dependant period. If you have an estate large enough that whole-of-life makes sense, see our Inheritance Tax Calculator to model the IHT exposure first.
When does life insurance NOT make sense?
If you have no dependants, no debt, and no one financially relying on your income, life insurance has no purpose. Single people without children rarely need it (though many buy it for emotional reasons). Empty-nesters whose mortgage is paid off may not need it. People with very large liquid estates may not need it — though they may want trust-written cover for IHT planning. The honest needs analysis above will show you a recommended cover of £0 or very low if these apply, and the calculator will surface a clear "no additional cover needed" message. Critical illness cover is a complementary product — see our Critical Illness Cover Calculator for protection that pays out while you're still alive. If your only goal is to clear the mortgage rather than fully replace income, our Mortgage Life Cover Calculator sizes a focused decreasing or level term policy at the cheapest premium.
Frequently asked questions
How much life insurance does a 35-year-old with two children need in 2026?
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A typical UK 35-year-old earning £45,000 with two young children, a £200,000 mortgage and modest savings will usually need somewhere in the region of £600,000–£800,000 of life cover on a needs-based calculation: enough to clear the mortgage, replace 10–15 years of income, fund childcare to age 11, and provision for university. The exact figure depends on your partner's earning capacity, employer death-in-service benefit, and how long you want income to be replaced. Run the calculator above with your real numbers — and treat the output as a starting point for a broker conversation, not a quote.
What is the difference between term life and whole-of-life insurance?
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Term life and whole-of-life differ primarily in cost and purpose: term life pays out only if you die within the policy term (typically 20–30 years) and is cheap; whole-of-life pays out whenever you die but costs roughly 5–10× more for the same sum assured. Whole-of-life is usually only worth it for inheritance tax planning where the policy is written in trust to meet an expected IHT bill. Most UK families with children buy 25-year level-term life insurance against the mortgage and dependant period.
Should I include my employer's death-in-service benefit in my calculations?
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Yes — but cautiously. Death-in-service typically pays 2×–4× your salary as a tax-free lump sum if you die while employed. It counts as existing cover, so include it. The caveat: it disappears the moment you leave the job, change employer, or retire. If your needs-based calculation only just clears with death-in-service included, consider buying personal cover that bridges the gap so you are not exposed during a job change. Always check your benefits statement for the exact multiple.
Is life insurance payout subject to inheritance tax in the UK?
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Life insurance payouts form part of your estate for IHT purposes by default — meaning a £500,000 payout could be taxed at 40% above the nil-rate band. The fix is to write the policy in trust. A trust-written policy pays out directly to the beneficiaries you nominate, completely outside your estate, with no IHT and usually faster than probate. Most UK insurers offer a free trust form when you take out the policy. For estate-planning context, see our Inheritance Tax Calculator.
How much does £500,000 of life insurance cost per month?
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For a healthy non-smoking 35-year-old, £500,000 of 25-year level-term cover typically costs roughly £15–£30 per month in 2026. By age 45 the same cover often costs £30–£60. By age 55 it can be £80–£150. Smokers and applicants with health conditions can pay 2–10× more. These are illustrative ranges, not quotes — actual premiums depend on age, health, smoking history, term length, sum assured, and provider underwriting. Always compare quotes from at least three providers.
When should I review my life insurance cover?
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Review your cover at every major life event: marriage or divorce, having a child, moving house or changing mortgage, a significant pay rise, starting a business, or a partner stopping work. Also review every 3–5 years even without a trigger event because debts, dependant ages, and asset values all drift. The most common mistake is buying cover for a first child and never updating it when the second arrives or the mortgage doubles.
Calcsmith provides estimates based on the information you enter. This is a needs estimate, not a quote, recommendation, or regulated financial advice. Consult an FCA-regulated financial adviser for personalised guidance.