Many Welsh adults are significantly overestimating the cost of life insurance and delaying coverage until key life events, new research from L&G reveals.
On average, people in Wales overestimate the monthly cost of life insurance by 129%, estimating it to be £64.05 when the actual average L&G policy cost was £27.95 in 2024.
Cost is the biggest barrier for those in Wales without a policy, with nearly a third (34%) believing life insurance is “too expensive.” This is despite a majority (62%) rating their own understanding of the product as “Good” or “Excellent.”
Delays linked to life milestones Misconceptions about cost are contributing to delays in obtaining coverage. Many are waiting for traditional milestones, such as buying a home, getting married, or starting a family, before securing protection. For Welsh respondents, buying a home (22%) was a key trigger, but a significant 26% said they don’t plan to take out a policy at all.
Previous L&G research (2024) underscores this trend, showing that 6.5 million UK adults are postponing financial products, such as life insurance, until they reach key life milestones. Broader societal patterns reinforce this behaviour: in 2025, fertility rates in England and Wales reached record lows, the median age for a first marriage is approximately 31, and the average first-time homebuyer in England is 34.
Cost remains the biggest barrier in Wales In Wales, cost is the primary obstacle. Nearly a third (34%) of respondents without a policy said life insurance is “too expensive.” This perception is a major factor in purchasing decisions. When asked what might persuade them to buy life insurance, almost half (48%) of Welsh respondents cited “lower monthly cost”—a figure significantly higher than the UK average.
Knowledge gap despite confidence Despite frequent financial check-ins, a gap between perception and reality is clear in Wales. Over 61% of Welsh respondents claimed to have a “Good” or “Excellent” understanding of life insurance, yet the majority still significantly overestimate its cost.
The benefits of securing life insurance early
Life insurance is not only an affordable safety net but also an essential tool for financial planning. Taking out a policy early can:
- Protect loved ones: Ensure dependents are financially secure in the event of an untimely death.
- Lock in lower premiums: Younger, healthier individuals often pay significantly less for coverage.
- Provide peace of mind: Life insurance removes uncertainty, allowing policyholders to focus on long-term financial goals.
- Cover unexpected costs: From mortgage payments to childcare or funeral expenses, life insurance can prevent loved ones from inheriting debt.
James Shattock, Managing Director UK Protection, said: “There is a significant perception gap when it comes to life insurance. Younger generations are proactive with their finances, but many still overestimate the cost and underestimate the importance of protection. Our research shows this is particularly true in Wales, where nearly half of those without a policy would be persuaded by lower costs. Life insurance isn’t just for traditional milestones—it’s a core part of financial wellbeing for anyone with dependents and is often far more affordable than people realise. Starting a policy early can mean lower premiums and stronger protection, while delaying coverage leaves families exposed to unexpected financial pressures.”
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