How much does life insurance cost?
Learn about the cost of life insurance. Find out what affects your premiums and what your options are with Tesco Life Insurance.
Published: 8 January 2026
What is life insurance?
Life insurance is cover that pays out a cash lump sum if you die or become terminally ill during the term of the policy.
It’s designed to give your loved ones some financial support after you’re gone - by helping to pay off your mortgage or covering the cost of their living expenses.
If you’re new to life insurance, you can learn more in our beginner’s guide: What is life insurance?
You can also find out what some of the key terms mean in our life insurance glossary.
What does Tesco Life Insurance cover?
Tesco Life Insurance is what’s known as term life insurance. This means it covers you for the length - or term - of the policy. And you choose how long you want cover for.
How much term life insurance costs depends on the type of cover you choose. With Tesco Life Insurance, there are 2 options:
- Family Protection - provides your partner or children with a cash lump sum if you die.Family Protection - provides your partner or children with a cash lump sum if you die.
- Mortgage Protection - provides your loved ones with a lump sum that could help to pay off a mortgage.Mortgage Protection - provides your loved ones with a lump sum that could help to pay off a mortgage.
For full details on what’s covered by Tesco Life Insurance, please see the policy documents.
Remember, life insurance isn’t a savings or investment plan. It’ll only pay out on a successful claim. If you stop paying your premiums, or you cancel your policy, your cover will end and you won’t get any money back.
To find out more, take a look at our guide: What does life insurance cover?
How much does life insurance cost?
Cost is the biggest reason Brits don’t have life insurance - 36% say it’s too expensive.* But how much does life insurance cost exactly?
The amount you pay usually depends on a number of things, including the type of policy you go for, how much cover you want, and a few things your insurer needs to know about you. This includes:
- Age - The older you are, the more expensive your life insurance policy will be. That’s because, as you age, there’s a higher risk of developing a medical condition that could affect how long you’re likely to live.Age - The older you are, the more expensive your life insurance policy will be. That’s because, as you age, there’s a higher risk of developing a medical condition that could affect how long you’re likely to live.
- Lifestyle - Having an unhealthy lifestyle can mean you’ll pay more for a life insurance policy. For Example, having a high BMI, raised blood pressure or high cholesterol will lead to your premiums typically being higher.Lifestyle - Having an unhealthy lifestyle can mean you’ll pay more for a life insurance policy. For Example, having a high BMI, raised blood pressure or high cholesterol will lead to your premiums typically being higher.
- Health - Having a pre-existing medical condition can affect the price you pay for life cover. If you have a more serious, chronic medical condition, it’ll usually mean your premiums are higher or you might not be offered cover at all.Health - Having a pre-existing medical condition can affect the price you pay for life cover. If you have a more serious, chronic medical condition, it’ll usually mean your premiums are higher or you might not be offered cover at all.
- Family medical history - Insurers might ask if your parents, brothers or sisters have ever had a serious medical condition. It can increase the cost of your policy if they have, as there’s usually a greater risk of you suffering from the same condition.Family medical history - Insurers might ask if your parents, brothers or sisters have ever had a serious medical condition. It can increase the cost of your policy if they have, as there’s usually a greater risk of you suffering from the same condition.
- Occupation - If you have a dangerous job, you might have to pay more than someone who works in a low-risk job, like an admin role.Occupation - If you have a dangerous job, you might have to pay more than someone who works in a low-risk job, like an admin role.
- Smoker status - If you’re a smoker, you can expect to pay more for life cover than a non-smoker because of the associated health risks. This also applies if you use nicotine replacement products or vapes.Smoker status - If you’re a smoker, you can expect to pay more for life cover than a non-smoker because of the associated health risks. This also applies if you use nicotine replacement products or vapes.
- Length of cover - Life insurance policies with longer terms can be more expensive than ones with a shorter term.Length of cover - Life insurance policies with longer terms can be more expensive than ones with a shorter term.
- Amount of cover - You decide how much you’d like to be covered for. In most cases, the higher the cover, the higher the premiums will be.Amount of cover - You decide how much you’d like to be covered for. In most cases, the higher the cover, the higher the premiums will be.
When applying for life insurance, always answer the insurer’s questions accurately and honestly, If you don’t, it could affect a claim that’s made on the policy - and the insurer may not pay out.
It’s also worth noting that acceptance isn’t guaranteed. And a life insurance provider might not be able to offer you cover.
How much cover do I need?
To work out how much life insurance cover you need, and how much that’ll cost, think about:
- Why you need itWhy you need it
- How long you need itHow long you need it
- Whether you want a single or joint policyWhether you want a single or joint policy
If you’re looking to leave your family a lump sum after you die, Family Protection is the best option for you.
If you want to help them repay the mortgage without you, Mortgage Protection is better suited for this.
To help you work out how much cover you might need, see our guide: How much life insurance do I need?
Should I choose a single or joint policy?
Both Family Protection and Mortgage Protection can be taken out as a single or joint policy.
A single life insurance policy is cover for one person only. It pays out a lump sum after that person dies, and there’s no cash-in value at any time.
A joint life insurance policy covers two people on one policy and can be cheaper than buying two policies. You’ll also only have one monthly premium to pay.
Like the single policy, a joint life insurance policy only pays out once. The cover ends after the first death of a policyholder. So, while it might be a cheaper option, a joint policy will leave one partner without any cover after the other dies.
What is the average cost of life insurance?
The price you pay for life insurance depends on several different things, so there isn’t an average cost. It depends on your personal circumstances, as well as the level and length of cover you need. And Aviva, our life insurance provider, will base the cost of your cover on these things.
Tesco Life Insurance starts from as little as £5 a month. You’ll also get a discount with your Tesco Clubcard, whatever the monthly cost.
Does life insurance cover funeral costs?
Life insurance can be used to cover a range of costs after you’re gone, including your funeral. We can help you work out how much cover you need when you take out a policy with us.
Why get Tesco Life Insurance?
At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.
- Clubcard Prices – Exclusive discount on Tesco Life Insurance with your Clubcard.Clubcard Prices – Exclusive discount on Tesco Life Insurance with your Clubcard.
- Your Big Win - Get a £100 Tesco gift card after you’ve paid 6 months’ premiums. T&Cs apply.Your Big Win - Get a £100 Tesco gift card after you’ve paid 6 months’ premiums. T&Cs apply.
- Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco.Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco. T&Cs apply.
As well as your Tesco benefits, you’ll get access to health and wellbeing services with the Aviva DigiCare+ app, provided by Square Health and other selected partners.
Tesco Life Insurance is provided and administered by Aviva, who have a 5-star rating for life insurance from Defaqto and pay out on 98.8% of claims**.
About our data
*All figures are taken from an online survey conducted by WALR on behalf of Tesco Insurance between 11 and 25 July 2025. The survey included a sample of 2,008 UK consumers under 55 years of age.
**Aviva 2025 Claims report, covering claims made across all life insurance policies in 2024.
Important information
About Tesco Life Insurance
Tesco Life Insurance is arranged, administered and underwritten by Aviva Life & Pensions UK Limited.
Tesco Personal Finance Ltd acts as an introducer to Aviva Life & Pensions UK Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of the Association of British Insurers. Firm Reference Number 185896.
Aviva Life & Pensions UK Limited. Registered in England & Wales No. 3253947. Registered Office: Aviva, Wellington Row, York, YO90 1WR. Tesco Personal Finance Ltd and Aviva Life & Pensions UK Limited. are not part of the same corporate group.
About Tesco Insurance
Tesco Insurance is a trading name of Tesco Personal Finance Ltd, Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ (registered in Scotland, no SC173199) which is authorised and regulated by the Financial Conduct Authority (register no. 186022).
Aviva DigiCare+ app
With the Aviva DigiCare+ app, you can start using a range of health and wellbeing services when you take out your policy.
Members of your family can use it too, as long as they're eligible.
The Aviva DigiCare+ app is provided by Square Health. The services are provided by Square Health and other selected partners.
You'll find full details about the services in the app, along with the terms and conditions, residency restrictions and privacy policy.
Aviva DigiCare+ is a non-contractual benefit that could be changed or withdrawn by Aviva at any time. So, it won't appear in any contract you've signed, or in any terms and conditions.
Life Insurance policy booklets
Please check the policy documents to make sure the cover you’ve chosen meets your needs.
The policy booklet and product information documents tell you about the benefits, limitations and exclusions that’ll apply to your cover.
The Big Win - £100 Tesco Gift Card
Terms and conditions
- You’ll get a £100 Tesco Gift Card once you’ve paid 6 months’ premiums, if you have a current Tesco Life Insurance policy.You’ll get a £100 Tesco Gift Card once you’ve paid 6 months’ premiums, if you have a current Tesco Life Insurance policy.
- Customers are entitled to one Tesco Gift Card per policy.Customers are entitled to one Tesco Gift Card per policy.
- We'll send your Tesco Gift Card to the email address you used when applying for your Tesco Life Insurance policy.We'll send your Tesco Gift Card to the email address you used when applying for your Tesco Life Insurance policy.
- Tesco Gift Cards should be treated like cash. Lost or stolen cards can’t be replaced.Tesco Gift Cards should be treated like cash. Lost or stolen cards can’t be replaced.
- You'll get an e-gift card, which can be used in any UK Tesco store. Please note, your Tesco Gift Card can’t be used in Tesco Petrol Stations.You'll get an e-gift card, which can be used in any UK Tesco store. Please note, your Tesco Gift Card can’t be used in Tesco Petrol Stations.
- Tesco’s change of mind policy does not apply to gift cards. If you change your mind, you can’t return your Tesco Gift Card for a refund. Your legal rights are not affected.Tesco’s change of mind policy does not apply to gift cards. If you change your mind, you can’t return your Tesco Gift Card for a refund. Your legal rights are not affected.
- Your Tesco Gift Card and balance will expire five years after the date you activated your card, or the date you last used your card, whichever comes later.Your Tesco Gift Card and balance will expire five years after the date you activated your card, or the date you last used your card, whichever comes later.
- Damaged, altered or cancelled cards won’t be accepted as payment.Damaged, altered or cancelled cards won’t be accepted as payment.
- Your Tesco Gift Card can’t be used to buy another Tesco Gift Card, or to buy other gift cards sold in-store or online at tescogiftcards.com. Your Tesco Gift Card can’t be used to buy another Tesco Gift Card, or to buy other gift cards sold in-store or online at tescogiftcards.com.
- We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.
Little Life Helps - Tesco shopping benefits
Terms and conditions
- You’ll get money-off coupons to spend on your Tesco shopping for one year, starting from the date you get your first coupon.You’ll get money-off coupons to spend on your Tesco shopping for one year, starting from the date you get your first coupon.
- You’ll need to have the Tesco app on your mobile phone and be opted in to marketing.You’ll need to have the Tesco app on your mobile phone and be opted in to marketing.
- The coupons will appear automatically in your Tesco app.The coupons will appear automatically in your Tesco app.
- You'll get up to 5 Tesco coupons throughout the year, which could include £15 off your total shop and £5 off fruit & veg.You'll get up to 5 Tesco coupons throughout the year, which could include £15 off your total shop and £5 off fruit & veg.
- We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.
Tesco Life Insurance is provided, administered and underwritten by Aviva Life & Pensions UK Limited.
Aviva have a 5-star rating for life insurance from Defaqto. And they pay out on 98.8% of life insurance claims*.
*Aviva UK individual claims report 2025, based on claims paid in 2024.
Learn more about Life Insurance
Find the right cover to give financial support to your family after you’ve gone. Tesco Life Insurance comes with Clubcard Prices, some great Tesco shopping benefits and Aviva DigiCare+.