Life Insurance in the UK: What £5-£50/Month Actually Covers

Updated for 2026 · 8-minute read

In the current economic climate, it is natural to wonder if quotes starting from £5 per month are real and what they actually cover. Here is a clear, honest breakdown of what different budget levels typically provide.

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A quick overview before we dive in

At CHFinance, we believe that protecting your future should not mean sacrificing your budget today. Whether you have the budget of a takeaway coffee or a full family meal, there are protection options available.

Below is a simple breakdown of what different budget levels generally cover in the UK market, and how our qualified advisors help you find the right balance.

What does your budget get you?

Cozy reading area representing essential protection

£5–£10 / mo

The Essentials

Ideal for: Young adults, non-smokers, and those looking for straightforward mortgage cover.

When you see quotes starting from roughly £5 a month, you are typically looking at Term Life Insurance. This is the most basic form of cover.

What it does: It pays out a cash lump sum if you pass away during the policy term.
Decreasing term: Often used for Mortgage Life Insurance. As your mortgage balance goes down, the potential payout decreases.
The reality check: To get rates this low, you usually need to be in good health and under a certain age.

Family playing together representing safety net protection

£20–£35 / mo

The "Safety Net"

Ideal for: Families, homeowners, and those wanting protection against illness, not just death.

Increasing your budget to this range often unlocks Life and Critical Illness cover.

Critical illness cover: Financial support if you are diagnosed with a serious illness defined by the policy.
Why it costs more: You are statistically much more likely to suffer a serious illness before retirement than to pass away.

Professional working from home representing comprehensive protection

£40–£50+ / mo

Comprehensive Income Protection

Ideal for: The self-employed, main breadwinners, and those with high monthly liabilities.

If you are self-employed or do not have sick pay benefits at work, this tier is where we often look at Income Protection.

Income replacement: Pays a monthly tax-free income if you are unable to work due to illness or injury.
Peace of mind: Ensures bills, food, and the mortgage are paid even if you are out of action for months.

Why "Comparison Sites" Aren't Enough

You might find a generic price online, but does it cover your specific medical history? Does it exclude the one thing you are worried about? As shown in our process, CHFinance does not just give you a computer-generated number. We offer a no-obligation review tailored to your circumstances.

The Bottom Line

Whether you have £5 or £50 to spend, the most expensive policy is the one that does not pay out because it was not set up correctly.

Don't guess with your family's future. Let our qualified team search the market for you.

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