Life insurance calculator

The monthly cost of life insurance depends on your personal circumstances. It can vary based on:

• How much cover you want
• Whether it covers just you or you and your partner
• How long the policy lasts for (the ‘term’)
• Whether the policy pays out a decreasing amount, an increasing amount or stays level over time
• Your age and health
• Your lifestyle, such as whether or not you smoke

The more risk you pose to the insurer, the more your premiums are likely to be.

The type of life insurance you choose will affect how much you pay each month. Here’s a breakdown:

• Decreasing term cover is usually the cheapest option. It’s designed to cover debts like repayment mortgages, where the cash payout reduces over time. Post Office Decreasing Life Insurance is suited to loans with interest rates up to 8%
• Increasing term cover usually has the highest monthly premiums. The cash payout rises each year to help keep up with inflation, which means the cost also increases annually
• Level term cover typically costs more than decreasing term. It pays out a fixed cash lump sum and is often used to support family members or repay an interest-only mortgage

Even if two people choose the same type of policy, one might pay more than the other depending on their health, age and lifestyle.

When applying, calculate the cash payout you’d want your beneficiaries to receive. Based on that, we’ll work out your monthly premiums.

There’s no one-size-fits-all answer. You’ll need to think about your own situation, including your mortgage, cost of living, savings and any financial help your family might need if you’re no longer around.

As a rule of thumb, lower payouts tend to mean lower premiums. The premium is also based on how much of a risk the insurer thinks you are. So the healthier you are, the lower your premium might be. More detail is given on what’s considered higher risk below.

There’s no set average because everyone’s needs and circumstances are different. Your monthly premium will be based on things like:

• Your age, height and weight
• Whether you smoke or drink alcohol
• Your medical history, including any diagnosed conditions or mental health issues
• Your family’s medical background
• How risky your job is

This isn't an exhaustive list and different insurers may have other criteria and differing levels of scrutiny.

Your job may also play a role. Someone working in a high-risk role, like with explosives, will usually pay more than someone in a low-risk job, like a teacher.

You may be able to reduce your premium if you make healthy changes before applying.

For example, quitting smoking can help, but most insurers need you to be smoke-free for at least 12 months first. This includes nicotine patches and e-cigarettes. Drinking less alcohol or losing weight could also lower your cost. These changes need to happen before you take out the policy.

Your age matters too. Life insurance premiums are typically lower when you're younger and healthier. This means taking out a 30-year policy at age 18, for example, can be a cost-effective way to lock in low premiums for the long term, even if the policy may not be needed for many years.

Keep in mind term life products have a defined lifetime.

Use our life insurance calculator to adjust different options and see how they affect the cost of your cover.