Myth 1: Life Insurance Is Too Expensive
This is the most common reason people give for not having cover, and it is simply wrong. A healthy 30-year-old non-smoker can get £200,000 of level term cover for around £8 per month. That is less than the cost of two coffees a week.
Even for older applicants or those with health conditions, life insurance is often far more affordable than people assume. A 45-year-old non-smoker typically pays under £30 per month for £200,000 of cover. The key is to compare quotes from multiple insurers, as prices vary significantly.
Myth 2: My Employer’s Death-in-Service Benefit Is Enough
Death-in-service benefits are a valuable workplace perk, typically paying a lump sum of two to four times your annual salary to your family. However, relying on this as your sole form of life insurance is risky for several reasons:
- The benefit ends immediately when you leave the company, are made redundant, or retire
- Two to four times salary may not be enough to cover a mortgage plus years of income replacement
- You have no control over the policy terms or the level of cover
- If you develop a health condition during your employment, securing affordable personal cover later may be difficult or impossible
A personal life insurance policy complements your employer benefit and stays with you regardless of job changes.
Myth 3: I Am Too Young to Need Life Insurance
Youth is actually the best reason to buy life insurance, not a reason to avoid it. The younger you are, the cheaper your premiums will be, and those rates are typically locked in for the entire policy term. A policy taken out at 25 could cost half as much as the same cover bought at 35.
Even if you have no dependants now, securing a policy while young and healthy gives you a financial safety net that you can adjust as your life circumstances change. Waiting until you “need” it often means waiting until you are older, less healthy, and facing much higher premiums.
Myth 4: Life Insurance Does Not Pay Out
This myth persists despite overwhelming evidence to the contrary. UK life insurers paid out a record £5.32 billion in 2024, with an industry-wide claim acceptance rate exceeding 97%. The small percentage of declined claims almost always involve material non-disclosure, where the policyholder failed to declare relevant health information or lifestyle factors on their application.
As long as you are honest and accurate on your application, there is virtually no risk of a legitimate claim being refused.
Myth 5: I Only Need Enough to Cover My Funeral
Funeral costs average over £4,400 in the UK, and covering this is certainly important. But if anyone depends on your income, funeral cover alone leaves an enormous gap. Your family needs your income replaced, your mortgage paid, and your children’s future funded.
Use the income multiplier method to calculate how much your family truly needs. For most parents, the right figure is ten to twenty times their annual salary, not a few thousand pounds. See our how much cover guide for a detailed calculation.
Myth 6: I Cannot Get Cover Because of My Health
Many people with pre-existing conditions assume they are uninsurable. In reality, the majority of health conditions do not prevent you from getting life insurance. Conditions including diabetes, asthma, depression, high blood pressure, and even some cancer histories can be covered, although premiums may be higher.
Specialist brokers and whole-of-market advisers can search across all UK insurers to find the most competitive rates for your specific health profile. Some insurers are significantly more favourable than others for certain conditions.