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Life Insurance From £5: Top 12 Affordable Life Insurance Providers

6 minute read

By Hannah Stephens

Purchasing life insurance coverage is essential for protecting your family’s finances if you die. This type of insurance pays a death benefit to a named beneficiary to help them make mortgage payments, pay for funeral costs or cope with daily living expenses if they rely on your income.

Many people put off sorting out life insurance because they’re worried about the costs. However, coverage from a reputable insurer doesn’t have to cost the earth — even if you’re over the age of 50. Below, you can find out about 12 companies offering competitively priced life insurance products from just £5 a month. / Shutterstock

1. Aviva

Aviva sells a wide range of car and health insurance policies, and you can also purchase life insurance coverage starting from £5 per month. They provide single and joint life products that pay out a lump sum if you die during the policy term. You can also claim if you’re diagnosed with a terminal illness and have a life expectancy of 12 months or less.

Aviva’s flexible coverage allows you to tailor your plan to suit your needs, including benefits that increase with inflation or decreasing policies designed to help your loved ones pay off a mortgage. Customers can also take advantage of the Aviva Digicare+ app, which provides annual health checks and mental wellness support.

2. Direct Line

Direct Line is one of the UK’s best-known insurers, so you might be surprised to learn that they offer life insurance policies for as little as £5 per month. Existing customers can save 7% on the costs of their life insurance policy, providing they pay at least £5 per month. You can also add Critical 3 cover to your policy to receive a lump sum if you experience a heart attack, cancer or stroke during your policy’s term.

Direct Line life insurance offers a range of perks, including 24/7 free GP appointments through the company’s Smart Health scheme. Enrollees also receive a gift card worth up to £180 after 6 months, redeemable at retailers like Amazon and Marks and Spencer.

3. Zurich

Zurich is another leading insurance provider offering life insurance from £5 per month. They provide a guaranteed payout if you die during the policy’s term or receive a terminal illness diagnosis with a life expectancy under 12 months. You can also purchase additional critical illness cover to help you meet living costs if you become seriously unwell.

Zurich is ideal for customers who want maximum peace of mind because it paid out 98% of death claims in 2020. They also plant a tree for every policy purchased through Tree-Nation, allowing you to safeguard your family finances while helping the planet.

4. Legal and General

Monthly premiums for Legal and General life insurance policies begin at £6 per month, and you’re covered if you die or are diagnosed with a terminal illness while the policy is in force. The company offers flexible insurance options, and you can choose your policy length and payout amount to suit your family circumstances.

Legal and General life insurance policies include free accidental death coverage, and you can add critical illness coverage to your plan for an additional fee. Policyholders also receive a free £100 gift voucher to use at Marks and Spencer or Amazon.

5. LV=

LV= considers life insurance policy applicants between the ages of 17 and 84, although they only cover enrollees until age 90. You can choose a policy length between 5 and 50 years with premiums starting from £5 per month. All policies include free terminal illness cover, and LV= guarantees to keep your premium payments level unless you choose to change your coverage.

LV= life insurance customers can use LV= Doctor Services free of charge. You’ll also receive an e-gift voucher worth up to £250, depending on your premium amount.

6. Sainsbury’s Bank

Sainsbury’s sells more than just groceries — their bank also offers competitively-priced life insurance plans for people over 50 without a medical exam. Their coverage starts from just £5 per month, depending on your enrollment age, and you can choose between two plan types. The fixed plan offers level premiums and a guaranteed death benefit when you pass away.

Alternatively, the increasing plan charges increasing premiums in line with inflation, and your death benefit grows at the same rate. Purchasing life insurance through Sainsbury’s Bank could be a good choice for Nectar Card holders. Policyholders receive Nectar Points worth £100 after their fifth premium payment.

7. Shepherd’s Friendly

Shepherd’s Friendly is another insurer offering affordable life insurance plans for older adults. Coverage costs between £10 and £50 per month, and you’ll retain coverage after your premium payments end at age 90. Applicants don’t need to undergo a medical exam, and your beneficiaries will receive a guaranteed, tax-free sum when you pass away.

A Shepherd’s Friendly life insurance plan comes with several bonus benefits, including a free £50 Love2shop voucher after paying your sixth premium. Customers can also receive a discount of up to £250 on their funeral costs if they arrange it through Co-op Funeral Care.

8. OneFamily

OneFamily guarantees to accept applications from any UK citizen between the ages of 50 and 80, and you won’t need to answer medical questions or undergo an examination. All plans come with free terminal illness coverage after 2 years, and premiums begin from £10 per month.

OneFamily partners with RedArc and Co-op, entitling enrollees to free health and mental wellness services. Plans also include Funeral Funding through Golden Charter, which allows policy proceeds plus a £300 contribution to be paid directly to your funeral provider.

9. Post Office

The Post Office isn’t just for mailing letters. They offer a range of affordable life insurance policies, including products designed for people over 50. You can choose between level, increasing or decreasing coverage to meet your family’s financial needs, and all policies include free terminal illness coverage.

Post Office life insurance plans come with several benefits that could help you save money. You’ll receive a £50 gift voucher for Argos, Amazon or Marks and Spencer after a qualifying period, and the Post Office covers your first premium payment free of charge. Enrollees and their family members are also entitled to free online GP, nutrition and mental health services.

10. Vitality

Vitality offers term life insurance policies from £8 per month, and there are also joint, whole life and over 50s plans available. Enrollees can choose to add Optimiser to their plan, which tracks and rewards healthy lifestyle habits. Keeping active and making healthy choices could reduce your premium payments by up to 40%.

Vitality customers can choose between level, increasing and decreasing coverage, depending on their budget and needs. All policies include free critical illness cover, although claiming during your lifetime could affect the death benefit.

11. Royal London

Royal London’s life insurance policies start at just £7 per month, working out at around 23p per day. They also sell affordable plans for people over 50. You can purchase coverage up to £500,000, and all plans include terminal illness cover as standard. Enrollees can also add serious illness cover to their plan for an extra fee.

Royal London offers level plans and increasing plans to manage the effects of inflation. They also sell decreasing plans designed to help your loved ones pay the balance on a mortgage. Customers paying at least £10 per month are eligible for a £100 voucher or cash gift after paying eight premiums.

12. AIG Life

AIG Life offers a range of term, whole life and over 50s life insurance products starting from £5.99 a month. A Life Start plan allows you to pay lower premiums for the first few years if you’re on a tight budget, although prices could rise over time. The company’s Instant Life policy doesn’t require a medical and takes just 8 minutes to apply for, and you’ll find out if you’re eligible immediately.

AIG Life coverage policyholders can receive a discretionary payment of up to £300 if they’re diagnosed with cancer. This benefit could help pay for costs associated with treatment like travel expenses. You and your family can also access free online GP appointments through the company’s Smart Health service.

Shop Around to Find the Best Deal

All the companies on this list have a reputation for providing reliable, affordable life insurance. However, which one offers the most competitive price and benefits for your circumstances depends on several factors, including your age and health status. Comparing several companies on a comparison site can help you find the best deal.

Hannah Stephens