10 everyday items that cost you more than your life insurance

Managing your finances is often a question of priorities. With a limited income, you have to think carefully about how you budget each month to ensure you can meet all your essential commitments, while having some cash left over for discretionary spending.

You recently read about the rising cost of living, and how almost one-third (29%) of adults aged between 18 and 40 say that they cannot afford to take out life insurance.

However, as we outlined recently, more than 4 in 5 people (82%) overestimate the cost of cover.

So, it’s likely that putting protection in place to give you the peace of mind that your family would receive financial support in your premature death could cost less than you think.

So, read on to find out why cover might be cheaper than you expect, and for 10 things you probably spend your money on that could cost you more than protecting you and your family.

Life insurance could cost just £6 a month

According to research published by consumer champion Which?, the average amount paid for life insurance is £38.15 a month. This is the average cost of more than 140,000 term life insurance policies taken out between September 2021 and 2022, with an average cover amount of £151,972.

However, for many people, even this amount is likely to be significantly more than you pay.

Your life insurance premiums are based on your age, your health (any pre-existing medical conditions such as diabetes), the amount of cover you want, and your lifestyle (such as whether you smoke, vape, or drink, for example). 

So, if you are a 20- or 30-year-old non-smoker and you have no pre-existing medical conditions then it’s likely your cover will cost significantly less.

Indeed, Legal & General revealed that many young people don’t have an accurate sense of how much a life insurance premium actually costs.

The monthly cost of a life insurance policy to cover a 30-year-old non-smoker with a cash sum of £100,000 for 30 years is just £7.27 a month. For a 24-year-old, this reduces to just £6 a month. Even a 36-year-old would pay less than £9 a month for cover.

So, based on the monthly cost of £100,000 of cover for the average 30-year-old of £7.27, here are 10 things that cost more than life insurance.

A Netflix subscription

In recent years Netflix has grown into one of the world’s biggest entertainment companies, generating an incredible $8.19 billion in revenue in Q2 2023 alone.

According to data in the Independent, since creating an account, the average Netflix user in the UK has consumed more than 55 days' worth of content. And, on average, Netflix subscribers tend to spend more than three hours per day on the platform. 

As of September 2023, the standard advert-free Netflix plan in the UK costs £10.99 a month. That enables two devices in your household to watch hit shows like Stranger Things, Bridgerton, and Heartstopper at the same time.

A Marks and Spencer pizza deal for two

As part of their meal deal, Marks and Spencer offer a choice of two pizzas from their standard selection, and two sides, for £12.

Choose from vegetarian and a range of traditional pizza toppings, alongside dishes such as mac and cheese bites, loaded fries, and breaded mushrooms.

Just giving up this deal for one weekend a month would enable a 38-year-old non-smoker in good health to buy £100,000 of term life cover for 30 years.

Two large Costa drinks

Costa Coffee has been voted the UK’s favourite coffee shop for 10 years in a row. The coffee giant boasts almost 3,000 outlets across the country and countless more self-serve locations in service stations and supermarkets.

Just two Costa medium lattes each month will cost more than the £7.27 the average 30-year-old non-smoker will pay for £100,000 of life insurance over 30 years.

Your pet insurance

Your pets will be precious to you and you may have taken out insurance to cover the cost of vet bills or emergency surgery. Indeed, a leading pet insurance broker reports that the average pet insurance premium for their customers is £115 a year, or £9.58 a month. The average monthly cost of dog insurance is slightly higher, at £11.04 a month.

While insuring your pets gives you peace of mind that there will be financial support it they need veterinary treatment, think also about the financial support your spouse, partner, or children might need if something happens to you. Is their peace of mind worth the same as you pay for your pet insurance?

A Graze box subscription

For more than a decade, Graze has been delivering snacks including nuts, small puddings, and oat flapjacks across the United Kingdom.

The company develops its own recipes that do not include genetically engineered ingredients, artificial flavours or colours, high fructose corn syrup, or trans fats and delivers weekly, bi-weekly, or monthly.

If you take a bi-weekly Graze subscription, you’re likely paying more for this than you would if you’re in your 20s or early 30s and wanted £100,000 worth of term life insurance.

A cinema ticket

The same-day release of Barbie and Oppenheimer generated a buzz around cinema not seen in years. Indeed, UK cinema chain Vue reported its biggest weekend for UK cinema ticket sales since before the Covid-19 pandemic.

While many cinema chains now offer unlimited viewings for a fixed price, even just buying one ticket at Cineworld or Odeon each month will likely cost more than your term insurance.

Amazon Prime

Providing access to a slate of popular movie and TV shows, alongside same- or next-day delivery for thousands of products, Amazon Prime offers many benefits.

The retail and entertainment empire is the world’s fifth most valuable company, partly due to its millions of Prime subscribers. In the UK, you’ll pay £8.99 a month for Prime – again, more than the cost of term insurance for many younger people.

An all-day family bus ticket

Taking your family out for the day on a shopping trip or to a local place of interest can be an real adventure – especially if you decide to go by bus.

The cost of a day’s travel depends on where you live, but it’s £9 for a day ticket in Cardiff, £8 in Nottingham, £10 in Manchester, and £10.50 in Edinburgh.

While this is good for your pocket and the environment, it’s likely to be more than the cost of simple life insurance.

A wonky veg box subscription

Fruit and veg boxes are a great way to get quality, healthy ingredients delivered straight to your door. 

A basic wonky veg box subscription costs £10.49 every two weeks – significantly more than the cost of life insurance for many younger non-smokers.

Betting

According to data reported by Finder, in the year to March 2023, 44% of Brits gambled at least once. The average person spends £141 a year (£11.75 a month/£2.70 a week) on betting and gaming.

If you like a flutter on football or racing, or you enjoy playing casino games or bingo online, then your average spend could be more than the cost of some simple life insurance to protect your family.

Get a life insurance quote now

As you’ve seen, there are lots of simple ways you could tweak your budget and find the monthly cost of a life insurance premium.

Get an online life insurance quote now and find out just how cheap cover could be.