Life Insurance pays out a lump sum to someone’s family or dependants if they die.A Life Insurance policy is designed to cover up to 5 or 10 times annual salary and provides a financial safety net to pay for ongoing household and utility costs such as mortgages, childcare and school fees.How many people have Life Insurance?The latest UK Life Insurance statistics suggest that around 35% of adults in the UK have a Life Insurance policy—that’s around 18.8 million people. How many people do not have Life Insurance?More than half of people in the UK do not have any Life Insurance and, according to the 2025 Life Insurance Index, around one in seven aren’t even sure if they’re covered.A 2024 survey by Beagle Street found that almost one in three mortgage holders (28%) under the age of 40 don’t have any Life Insurance.There are many reasons why young people might not bother with Life Insurance. If they are single and don’t have a mortgage or children, they may not see the value of it because they have a low income and no dependants.However, for those with a mortgage, dependants and financial responsibilities, Life Insurance can be essential to offer continued financial support to loved ones.Life Insurance statistics in the UKAccording to the Financial Conduct Authority, in 2023, about £4.85 billion was paid out in claims on individual policies. The average value of a Life Insurance claim paid out in 2023 was £80,403. Men are more likely than women to have a Life Insurance policy.Do I need Life Insurance?Is Life Insurance compulsory? No, but it can be one of the best employee benefits if the worst happens and you are the main breadwinner or financially responsible for your family.For young people under 30, Life Insurance starts from around £6 to £11 per month (non-smokers) and can be a low-cost way to prepare for the unexpected.When you have a mortgage and are living with other people, your Life Insurance cover can pay for ongoing mortgage payments, ensuring the responsibility doesn’t fall on someone else.Many employers are adopting Group Life Insurance policies to cover their staff. Offering Life Insurance benefits not only provides financial protection for loved ones in the event of a family member passing, but also gives your employees and their families peace of mind.What happens if I don’t have Life Insurance?Life Insurance is designed to cover a multiple of your salary so that your family can continue living a similar quality of life and do not suffer financial difficulty.If you do not have Life Insurance but you have financial responsibilities such as a partner, children and a mortgage, you risk leaving your family with unaffordable ongoing living costs. Your spouse could even be forced to sell the family home.Life Insurance can cover:Mortgage paymentsHousehold billsUtility billsChildcare expensesSchool fees and uniformsHolidaysCar paymentsWhat are the different types of Life Insurance you can apply for?Decreasing term life insuranceThis type of cover decreases over time, so is useful when you are in your 30s, 40s and 50s to pay for your mortgage and your children’s expenses. When you are older, your children have left home and you have paid off your mortgage, monthly payments are much smaller.Level term life insuranceThis is a policy that offers cover for a specified time, such as 10, 20 or 30 years. It is often more affordable because, depending on your age and general health, the insurer may not have to pay out during the term. Whole of life insuranceAs the name suggests, this policy offers cover for the whole of someone’s life. It is typically more expensive because the insurer knows it will have to pay out at some point, even if that is in 50 years’ time.How can I get Life Insurance for my business?If you are looking to provide Life Insurance for your employees, YuLife is here to help. Our group risk benefits, bundled in with an Employee Assistance Programme (EAP) and 24/7 virtual GP access, provide essential protection to employees and their families, offering a financial lifeline when they need it most.YuLife is the first digital insurance provider to offer long-term financial protection for employees and engage with them by rewarding healthy lifestyle changes via our gamified app. This is supported by an extensive package of preventative health benefits that protect the wellbeing of employees.Get a quote to find out how our simple, affordable employee benefits and the YuLife app can help your people live healthier and happier lives.