Over half of people in the UK don’t have life insurance – is your family protected?

Life insurance can help give your family a financial safety net if you die – but many people are going without cover.

Some 54% of UK adults don't have life insurance, according to Co-op research. And among those who do have cover, 12% don't know how much their policy is worth.

Here, Which? answers three key questions and explains how to choose a policy that works for you and your family.

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What does life insurance cover?

Life insurance is designed to provide financial support to your loved ones if you die. Typically, a life insurance policy pays out a lump sum that can help cover everyday living costs, pay off debts such as a mortgage, or fund future expenses such as your children's education. 

There are many different types of policies. Term life insurance covers you for a set period, paying out if you die within that time. Whole-of-life insurance, on the other hand, covers you for your entire life as long as you keep up with payments. 

It is important to check exactly what your policy includes. Some only pay out on death, while others may include cover for serious illnesses too. 

Reviewing your policy documents or speaking to your insurer can help ensure your cover matches your family's needs. 

• Find out more: best life insurance companies

3 key life insurance questions answered

Whether you're taking out life insurance for the first time or checking an existing policy, answering these three questions can help you work out whether your cover is right for you.

1. Do you need life insurance for a mortgage?

You don't usually need life insurance to get a mortgage, although some lenders may make it a condition of a particular mortgage offer.

Some 30% of people think life insurance is mandatory when taking out a mortgage, rising to 40% among millennials, according to UK-lifeinsurance.com's 2025 Life Insurance Index, based on a survey of 2,000 UK adults.

Even when it isn't compulsory, life insurance could help your family keep up with mortgage repayments or clear the outstanding balance if you die.

• Find out more: life insurance options for your mortgage

2. How much would your policy pay out?

Even if you already have life insurance, it's worth checking exactly how much cover you've got. 

Check your policy documents or speak to your insurer so you know how much your family could receive if you die.

Then consider whether that amount would still be enough for the costs you want it to cover. That could include your mortgage or rent, other debts, childcare, funeral costs and day-to-day bills.

• Find out more: ‘why my £16 life insurance policy isn’t enough to protect my family anymore' 

3. Who would get the money?

Taking out life insurance is only part of the job. You should also make sure you know who would receive the payout if you die.

Some 89% of homeowners hadn't checked the beneficiaries listed on their life insurance or pension in the previous year, according to research published by LifeSearch and the HomeOwners Alliance.

If your life insurance policy isn't written in trust, the payout will usually form part of your estate. This can mean it takes longer for the money to reach your beneficiaries and could have inheritance tax implications.

It's also worth making a will and keeping it up to date. A will sets out who should inherit your money, property and possessions, while putting life insurance in trust can help the payout reach your chosen beneficiaries more quickly and keep it outside your estate.

• Find out more: life insurance trusts explained

How to choose the right level of cover

The right amount of life insurance depends on your circumstances, but the main goal is to make sure your family has enough financial support if you’re no longer around. 

1. Add up your family's essential costs: Think about what your family would need to pay for without your income. This could include the mortgage or rent, debts, funeral expenses and everyday bills, as well as longer-term costs such as childcare or education.
2. Consider how much income you'd want to replace: You might want the payout to replace some or all of your income for a set number of years. Factor in other household income, savings and any benefits your family could receive.
3. Match your cover to your debts: If your main priority is clearing a repayment mortgage or another debt that reduces over time, decreasing term life insurance could be an option. The amount of cover falls during the policy term and can be cheaper than an equivalent level-term policy.
4. Check your cover when your circumstances change: Having children, buying a home, getting married or separating can all change the amount of financial protection your family needs. Review your policy after major life events to make sure the amount and type of cover still work for you.

Find out more:  do you have enough life insurance cover?