The UK Life Insurance Gap Study: would your family be financially okay if you died tomorrow?
We surveyed 2,000 UK adults aged 25 to 55. For millions of households the honest answer is uncertain, and that uncertainty is the real life insurance gap.
What the study found
This study looks at how financially prepared UK households really are if the main earner died unexpectedly. It explores not just whether people have life insurance, but whether they know how much cover they need, whether their household could cope, and why so many delay protection even when someone depends on them.
The findings point to something bigger than a cover gap. It is also a confidence gap, a knowledge gap and an avoidance gap. Many people insure their car, phone, pet or holiday while leaving their family’s income exposed.
Headline findings at a glance
| Finding | Result |
|---|---|
| Adults with no life insurance | 42% |
| Parents with no life insurance | 31% |
| Mortgage holders with no life insurance | 24% |
| Renters with no life insurance | 58% |
| Insure their phone but not their life | 27% |
| Do not know how much cover they need | 61% |
| Think life insurance is too expensive | 46% |
| Overestimate the cost of life insurance | 68% |
| Avoid thinking about death or family finances | 39% |
| Relying on employer death in service cover | 21% |
| Of those, do not know the payout amount | 54% |
| Would run out of money within 3 months | 37% |
| Had a major life event but did not review cover | 49% |
We protect what we own before our income
27% insure a phone, pet, holiday or appliance, but hold no personal life insurance
Who has life insurance, and who does not
| Answer | All adults | Parents | Mortgage | Renters |
|---|---|---|---|---|
| Yes, personally arranged | 36% | 48% | 55% | 24% |
| Yes, through work only | 12% | 13% | 11% | 10% |
| Yes, both personal and work | 10% | 8% | 10% | 8% |
| No | 42% | 31% | 24% | 58% |
There is a clear split between homeowners and renters. Mortgage holders are more likely to have cover, which makes sense because buying a home often prompts people to think about protection. But renters still have partners, children, debts, shared bills and responsibilities. Life insurance is not only about clearing a mortgage. For many households it is about keeping rent, bills, childcare and daily living costs covered if someone dies.
The financial impact of a death
| Answer | Result |
|---|---|
| Yes, definitely | 44% |
| Probably | 23% |
| Probably not | 12% |
| No | 9% |
| I do not know | 12% |
A combined 67% said someone would definitely or probably be worse off within 30 days if they died. Many people recognise that someone depends on them financially, yet a large share still have no cover, or do not know whether the cover they have would be enough.
| Cost | Result |
|---|---|
| Mortgage or rent | 41% |
| Food and household bills | 36% |
| Council tax and utilities | 33% |
| Funeral costs | 29% |
| Credit cards or loans | 24% |
| Childcare | 19% |
| Car finance or transport | 18% |
| I do not know | 17% |
Asked to respondents who said someone would be financially worse off.
For many households the first shock after a death would not be inheritance planning. It would be next month’s rent, mortgage payment, food shop, utility bill or funeral cost. That is why life insurance is best discussed in practical household terms, not just as a financial product.
How long could the household cope without the main income?
37% would run out of money within three months
Emergency savings can cover the first weeks, but may not replace years of lost income.
“The gap we found is not just that people lack cover. It is that so many do not know how much they need, overestimate what it costs, or simply keep putting it off. People insure their phone in minutes but leave the thing that actually matters, their family’s income, completely exposed. That mismatch is the whole story.”
Cost fears and confusion
| Estimated monthly cost | Result |
|---|---|
| Less than £10 | 7% |
| £10 to £20 | 18% |
| £21 to £40 | 29% |
| £41 to £60 | 21% |
| More than £60 | 14% |
| I do not know | 11% |
Based on a healthy non-smoker aged 35 over a 20 year term.
A combined 64% estimated the cost at more than £20 per month. Many people may be overestimating the cost of cover, which could be one reason they delay getting a quote. Nearly half of those without cover think it is too expensive, yet 68% overestimated the cost, so some are ruling themselves out before checking what a policy could actually cost.
| Reason | Result |
|---|---|
| I think it is too expensive | 46% |
| I have not got round to it | 39% |
| I do not know how much cover I need | 37% |
| I do not like thinking about death | 31% |
| I do not trust insurers | 24% |
| I think I am too young | 21% |
| I do not have children | 19% |
| I rent, so I do not think I need it | 17% |
| I tried before but did not finish | 14% |
| I was declined or quoted too much | 6% |
Asked to respondents with no personal life insurance.
The gap is not only about price. Cost is the most common barrier, but confusion, procrastination, mistrust and emotional avoidance all play a part. Many people are not rejecting life insurance outright. They are delaying it, misunderstanding it, avoiding the subject, or assuming it is more complicated or expensive than it may be.
| Answer | Result |
|---|---|
| Yes, I know the exact amount | 9% |
| I have a rough idea | 30% |
| No, I am not sure | 44% |
| I have never thought about it | 17% |
A combined 61% said they either do not know how much cover they need or have never thought about it. This is one of the clearest signs that the protection gap is partly an education gap. Many people know life insurance exists, but not how to work out the right amount, whether to cover the mortgage, income, childcare, debts, funeral costs, or a mix of these.
Trust in claims being paid
| Answer | Result |
|---|---|
| 0 to 25 | 5% |
| 26 to 50 | 11% |
| 51 to 75 | 24% |
| 76 to 90 | 29% |
| More than 90 | 18% |
| I do not know | 13% |
Many people are unsure whether insurers usually pay claims. Trust matters here. If people believe claims are often rejected, they may be less likely to arrange cover even when they understand the need. That is why it helps to explain clearly what can affect a claim, why honest application answers matter, and how payout rates work.
| Answer | Result |
|---|---|
| Yes, definitely | 28% |
| Probably | 34% |
| Probably not | 18% |
| No | 7% |
| I do not know | 13% |
Asked to respondents with some form of cover.
Having a policy is not the same as being properly protected. Some people may have old cover that no longer reflects their mortgage, income, children, debts or household costs. Others may have a small policy that helps with immediate costs but would not support their family long term. The gap therefore includes both people with no cover and people who may be underinsured.
Major life events that get missed
| Life event | Result |
|---|---|
| Changed job | 27% |
| Had a child | 22% |
| Moved in with a partner | 21% |
| Bought a home | 18% |
| Got married | 16% |
| Took out a major loan | 15% |
| Became self-employed | 12% |
| Had a health scare | 9% |
A combined 49% had experienced at least one major life event without reviewing life insurance. Protection needs often change when life changes. Having a child, buying a home, moving in with a partner, becoming self-employed or taking on debt can all increase the financial impact if someone dies, yet many people do not review their cover when these things happen.
| Factor | Result |
|---|---|
| Lower monthly cost | 48% |
| Seeing a clear price quickly | 43% |
| A simple explanation of what cover I need | 41% |
| No pushy sales call | 38% |
| Knowing claims are usually paid | 34% |
| Being able to compare providers | 31% |
| Speaking to an adviser | 22% |
| Recommendation from bank or employer | 18% |
| Nothing | 7% |
The strongest buying triggers are practical and emotional at once. People want affordability, speed, clarity and reassurance. They do not want to feel pressured, confused or sold to. In short, plain English, transparent pricing, simple comparison and a clear explanation of what cover is designed to do.
Who is most exposed
| Age group | No cover | Unsure how much | Too pricey |
|---|---|---|---|
| 25 to 34 | 52% | 68% | 49% |
| 35 to 44 | 39% | 59% | 45% |
| 45 to 55 | 34% | 53% | 41% |
Younger adults are the least likely to have cover and the most likely to be unsure how much they need. That may reflect life stage and perceived urgency, but younger adults still have partners, children, debts, rent and family responsibilities.
| Household type | No cover | Struggle within 3 months |
|---|---|---|
| Single, no children | 61% | 28% |
| Couple, no children | 44% | 31% |
| Couple with children | 27% | 39% |
| Single parent | 38% | 56% |
| Homeowner with mortgage | 24% | 33% |
| Renter | 58% | 46% |
Single parents look particularly exposed, with 56% saying their household would struggle within three months if the main income stopped. Renters also look more exposed than mortgage holders, possibly because mortgage holders are more likely to meet life insurance during the home buying process while renters get no such prompt.
| Employment status | No cover | Only employer cover |
|---|---|---|
| Employed full-time | 36% | 18% |
| Employed part-time | 49% | 9% |
| Self-employed | 51% | 3% |
| Not currently working | 62% | 1% |
Self-employed people look particularly exposed. Only 3% rely on employer cover, which is expected because most self-employed people do not get death in service benefits. That means self-employed workers may need to think harder about personal protection, especially with a partner, children, mortgage, rent, business debts or household bills resting on their income.
What the study tells us
- The gap is not only about having no policy. Some people have none at all. Others have cover but do not know whether the payout would be enough. A household can still be exposed if the cover amount is too low, the policy is outdated, or someone relies on employer cover without understanding the payout.
- People insure possessions before income. A broken phone is easy to imagine. Losing the main household income is harder to picture, but the financial impact could be far greater.
- Cost perception may be stopping people getting quotes. Nearly half of those without cover think it is too expensive, yet many overestimate the cost, so they may be ruling themselves out before checking.
- Confusion is a major barrier. If someone does not know whether they need £50,000, £150,000, £300,000 or more, they may delay the decision completely.
- Emotional avoidance is part of the gap. Life insurance is often delayed not because people do not care, but because they care so much that the subject feels uncomfortable.
- Major life events are being missed. Almost half had a major life event without reviewing cover, even though a child, a home, a partner, self-employment or new debt all change what a family would need.
If you died tomorrow, would the people you love be okay?
And for how long? For millions of households the honest answer is uncertain. The good news is that finding out what cover could cost takes only a few minutes.
Compare life insurance quotesHow we ran the study
This study was conducted through an online survey of 2,000 UK adults aged 25 to 55, using an online consumer research panel.
- Respondents were selected to include a broad mix of homeowners, renters, parents, non-parents, employed people, self-employed people and adults living with or without a partner.
- Responses were screened to remove incomplete entries, duplicates, unusually fast completions and answers that failed basic attention checks.
- The final sample was weighted to broadly reflect the UK adult population aged 25 to 55 by age, gender, region, household tenure, parental status and employment status.
- With 2,000 respondents, the maximum margin of error is about plus or minus 2 percentage points at a 95% confidence level. Subgroup results, such as renters, parents or self-employed respondents, are based on smaller samples and should be treated as directional.
For this study, the life insurance gap was defined as one or more of: having no personal cover despite someone depending on you financially; having cover but not knowing whether the payout would be enough; relying only on employer death in service cover without knowing the amount; having a major life event without reviewing cover; or believing the household would struggle within three months if the main earner died.
Respondents were not asked for medical, income or policy documents. Findings are self-reported and indicate consumer awareness, behaviour and confidence rather than a formal assessment of individual insurance needs. Percentages are rounded to the nearest whole number, so some totals may not add to 100% because of rounding or because respondents could select more than one answer.
Compiled and reviewed by Paul Gillooly, Founder of Surely. Published June 2026.
Surely is a trading style of PJG Financial Ltd, authorised and regulated by the Financial Conduct Authority, firm reference number 919697. This page presents original Surely research and is provided for general information.
