Paying a premium for your postcode? The link between location and life insurance costs

Taking out life insurance might not have been high on your priority list, but a global virus could be the thing to change that. 

In the UK’s Spring peak of the Coronavirus pandemic, a total of £90 million was paid out in life insurance claims related to Covid-19. This equates to £980k per day. 

Whilst money can never replace someone, it can be a huge help for the family left behind. 

To find out if your postcode can impact your premium, the UK’s biggest life insurance broker Reassured has analysed 5 years of internal data, made up of over 130,000 life insurance policies. 

The data reveals that the average life insurance premium in the UK costs just under £25 a month (£24.95). This works out as approximately half of the average monthly mobile phone bill. Considering the difference it could make to your loved ones, life insurance doesn’t really seem that expensive. 

Similar to car and home insurance, life insurance underwriting is based on a number of complex calculations, meaning people can pay different premiums depending on their age, location, and level of cover, amongst other factors. Premiums are calculated based on the likelihood of a claim being made. 

Ranking 6th in the UK overall, residents in the Isle of Anglesey pay the highest premium in Wales, with an average monthly charge of £29.33: 

Top 10 Areas with the Most Expensive Life Insurance Cover 
Rank  County/Borough  Average Monthly Premium 
1  Highlands  £41.53 
2  Haringey  £34.49 
3  Guernsey  £31.20 
4  County Armagh  £30.72 
5  Richmond upon Thames  £29.87 
6  Isle of Anglesey  £29.33 
7  Flintshire  £28.85 
8  Croydon  £28.67 
9  Wiltshire  £28.28 
10  Blaenau Gwent  £28.21 

Flintshire places 2nd in Wales and 7th in the UK overall, with the average monthly premium costing £28.85 per month, whilst Blaenau Gwent just enters the UK top 10 table with the monthly price of £28.21, making it the third most expensive place in Wales to take out life insurance. 

Looking at the cheapest areas for life insurance, the county borough of Torfaen is reported to have the lowest average monthly premium in Wales, coming to just £21.57. This places it as the 5th cheapest area for life insurance in the UK:

Top 10 Areas with the Cheapest Life Insurance Cover 
Rank  County/Borough  Average Monthly Premium 
1  Eilean Siar / Outer Hebrides  £20.59 
2  Clackmannanshire  £21.30 
3  City of London  £21.44 
4  Argyll and Bute  £21.48 
5  Torfaen  £21.57 
6  Neath Port Talbot  £21.58 
7  County Londonderry  £21.70 
8  County Fermanagh  £21.71 
9  West Dunbartonshire  £22.01 
10  Brent  £22.09 

Neath Port Talbot is the only other Welsh location to make it into the UK’s top 10 cheapest areas for life insurance, placing 6th overall. 

Regardless of where in the UK you live, the cost of cover can vary significantly between providers. Therefore, it is always best to compare multiple quotes to ensure you receive the best deal. 

View the full set of findings on the Reassured website here. 

For FAQs about life insurance and coronavirus, please see the dedicated help page here. 

Commenting on the findings, Phil Jeynes, Head of Corporate Sales at Reassured said: 

“It really is eye-opening to see the differences between UK areas when it comes to life insurance coverage and average premiums. But with the UK average premium falling just short of £25 per month, it highlights life insurance could be more affordable than people think. 

“To protect yourself and your loved ones, life insurance can offer financial assistance, helping to take some of the stress out of planning for the future. Each insurer uses a different underwriting process, so shop around to get the best deal for you.” 

About Lisa Baker, Editor 2363 Articles
Lisa Baker is the Editor of Always Finance, and writes about Business, Finance Technology and Healthcare. Lisa is also the owner of Need to See IT Publishing.