🛡️ Life Insurance Calculator - How Much Cover Do You Need?
Life Insurance Calculator UK - Frequently Asked Questions
How much life insurance do I need in the UK?
A common rule of thumb is 10-15 times your annual income. However, the most accurate method (DIME method) considers your Debts, Income replacement, Mortgage, and Education costs. Most UK families need between £200,000 to £500,000 in coverage.
What is the DIME method for life insurance?
DIME stands for: Debts (pay off all debts), Income (replace lost income for dependents), Mortgage (pay off home), Education (fund children's education). This calculator uses this comprehensive method for UK families.
Should I include my mortgage in life insurance?
Yes, absolutely. Your life insurance should cover your outstanding mortgage so your family can remain in the home without financial stress. The average UK mortgage is around £180,000-£200,000 in 2025.
How much does life insurance cost in the UK?
For a healthy 30-year-old non-smoker, £200,000 term life insurance for 25 years typically costs £10-£15 per month. Costs increase with age and health conditions. Get quotes from multiple UK providers like Aviva, Legal & General, and Vitality.
Term vs Whole Life Insurance - which is better?
For most UK families, term life insurance is better and more affordable. It provides coverage for a specific period (e.g., until mortgage is paid or children are independent). Whole life insurance is significantly more expensive and often unnecessary.
Is this calculator accurate for UK residents?
Yes! This calculator uses UK-specific costs including average funeral costs (£4,000-£5,000), UK university fees (£9,250/year), and UK mortgage data. Results are tailored for 2024/25 UK financial situations.
Can I use this calculator on my mobile phone?
Absolutely! This calculator is fully responsive and works perfectly on all devices including phones, tablets, and desktops.