UK Life Insurance Calculator
Calculate how much life insurance coverage you need to protect your family's financial future
Updated with UK life insurance guidelines and average costs for 2025/26
Life Insurance Needs Calculator
Determine the right amount of life insurance coverage based on your family's financial needs
Calculation Method
Personal Information
£
Your current annual salary
years
Current age (affects premiums)
years
When you plan to stop working
£
Partner's annual income
Family Details
years
Age of youngest dependent child
£
University and education expenses
Financial Obligations
£
Remaining mortgage debt
£
Credit cards, loans, car finance
£
Estimated funeral and final costs
£
Immediate expenses fund
Existing Resources
£
Current life insurance coverage
£
Employer life insurance (often 4x salary)
£
Available liquid assets
£
Current pension pot value
Advanced Settings
years
Years of income to replace
%
Expected long-term inflation
%
Expected return on insurance proceeds
%
Percentage of current lifestyle to maintain
Life Insurance Needs Summary
Total Coverage Needed
£525,000
Additional Coverage Required
£375,000
Existing Coverage
£150,000
Coverage Gap
£375,000
Coverage Breakdown
Estimated Monthly Premiums
Life Insurance Calculation Methods
Comprehensive Needs: Detailed analysis of all financial obligations, income replacement, and future costs adjusted for inflation.
Income Multiple: Simple rule of thumb using 5-10 times your annual income, adjusted for circumstances.
Debt Plus: Covers all debts plus income replacement for a specific period, suitable for younger families.
DIME Method: Debt, Income, Mortgage, Education - covers key financial responsibilities.
UK Life Insurance Information 2025/26
Types of Life Insurance
- Term Life: Temporary coverage, lower premiums
- Whole of Life: Permanent with investment element
- Family Income Benefit: Regular payments to family
- Mortgage Protection: Decreasing term insurance
- Joint Life: Covers both partners
Premium Factors
- Age and gender
- Health and medical history
- Smoking status (significant impact)
- Occupation and hobbies
- Coverage amount and term
Tax Considerations
- Premiums: Not tax deductible
- Payouts: Generally tax-free
- Inheritance tax: May apply if in your estate
- Trust arrangements: Can avoid IHT
- Business use: Different tax rules
Getting the Best Deal
- Compare quotes from multiple insurers
- Consider online providers
- Buy when young and healthy
- Don't smoke (or quit first)
- Review coverage regularly