Overestimating the cost of life insurance delaying protection planning

A recent survey has revealed that many people are delaying taking out protection policies because they massively overestimate the cost.

The study of 2,000 adults by Legal & General* found people believed the average monthly policy costs for life insurance to be £79.50 – 184% higher than the actual average L&G policy price of £27.95.

Over a quarter of respondents said they thought life insurance was “too expensive”, with concern particularly high among adults aged 45–54. 

This misperception leads many to delay protection until major life events like marriage or homeownership, even if those milestones occur later or not at all.

Life insurance is not only an affordable safety net but also an essential tool for financial planning.

Taking out a policy early can ensure dependents are financially secure in the event of an untimely death, lock in lower premiums, provide peace of mind, and cover unexpected costs – from mortgage payments to childcare or funeral expenses.

James Shattock, Managing Director UK Protection for L&G, said: “There is a significant perception gap when it comes to life insurance. Younger generations are proactive with their finances, but many still overestimate the cost and underestimate the importance of protection.

“Life insurance isn’t just for traditional milestones—it’s a core part of financial wellbeing for anyone with dependents and is often far more affordable than people realise.

“Starting a policy early can mean lower premiums and stronger protection, while delaying coverage leaves families exposed to unexpected financial pressures.”

* Legal & General, 2025 https://www.legalandgeneral.com/insurance/life-insurance/guides/average-cost-of-life-insurance

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