Typical Life Insurance Lead Pricing in the UK

Life insurance leads in the UK are generally priced between £40 and £80 per lead. The price depends on the type of life insurance, the depth of qualification, how the lead was generated, and whether it's sold exclusively to you or shared among multiple advisers.

At the lower end of the range (£40-£50), you'll typically find general life insurance enquiries — consumers who have expressed interest in getting a life insurance quote but may not have provided much detail beyond their contact information, age, and smoking status. These leads are straightforward to generate in volume, which keeps costs down, but they require more work on the phone to qualify and convert.

Mid-range leads (£50-£65) usually include more qualifying information: the consumer's reason for wanting cover (mortgage protection, family protection, income replacement), their approximate cover amount, whether they have any pre-existing health conditions, and their budget expectations. These leads tend to convert at a higher rate because the consumer has already put thought into what they need.

Higher-priced leads (£65-£80) are typically either specialist sub-types — such as over-50s life insurance, income protection, or critical illness cover — or leads that have been through additional verification steps. Specialist leads cost more to generate because the advertising audience is smaller, but they often represent higher-value policies.

Factors That Influence Life Insurance Lead Pricing

Policy Type and Complexity

Standard term life insurance leads are the most affordable because the market is large and consumer demand is consistent. Whole-of-life, over-50s, income protection, and critical illness leads tend to cost more because the advertising audiences are smaller and the consumer journey is more considered. Consumers researching income protection or critical illness cover often need more education before they're ready to speak with an adviser, which increases acquisition costs.

Exclusivity

As with mortgage leads, exclusivity is a major pricing factor. Exclusive leads — where you're the sole adviser receiving the enquiry — cost more but convert significantly better. Shared leads may be cheaper per unit, but the consumer will receive calls from multiple advisers, which creates a poor experience and drives down conversion rates. We'd always recommend exclusive leads, even at a higher cost per lead.

Verification Method

Leads that have been SMS-verified (the consumer confirms their phone number via a text message code) cost more to produce because the verification step adds friction and reduces the number of completed leads. However, the quality improvement is substantial — SMS-verified leads have significantly higher contact rates and lower invalid rates.

Geographic and Demographic Targeting

If you're targeting specific regions or demographic groups (for example, over-50s in the North West), the cost per lead increases because the available audience is smaller. Nationwide leads with no demographic restrictions are the most cost-effective on a per-lead basis.

Volume

Higher volumes typically unlock better per-lead pricing. If you're consistently buying 30+ life insurance leads per week, most providers will offer a discounted rate. Retainer arrangements with committed volumes can reduce costs further.

Life Insurance Leads Compared to DIY Advertising

Generating your own life insurance leads through Facebook or Google advertising is a viable option, particularly for advisers who have the time to learn. Here's what to expect:

Facebook advertising for life insurance can produce leads at £6-£15 each once campaigns are optimised. The initial learning phase typically requires £1,000-£1,500 in ad spend over 3-4 weeks, during which your cost per lead will be higher as the algorithm learns. Life insurance performs well on Facebook because the messaging resonates with life events — new babies, house purchases, marriage — that naturally align with protection needs.

Google Ads for life insurance keywords are competitive. Expect £3-£8 per click on terms like 'life insurance quote' or 'compare life insurance'. With a typical landing page conversion rate of 10-20%, that translates to £15-£80 per lead depending on the keyword and your landing page quality. Google leads tend to have higher intent but come at a higher cost.

The key consideration is time. Managing advertising campaigns effectively requires 5-10 hours per week. If your time is better spent advising clients, buying leads may offer a better overall return even at a higher cost per lead.

Calculating ROI on Life Insurance Leads

Life insurance ROI calculations differ from mortgages because the revenue model is different. With life insurance, you're typically looking at initial commission plus trail commission over the life of the policy. Here's a simplified example:

  • Cost per lead: £50
  • Conversion rate to placed policy: 12%
  • Leads needed per placed policy: ~8
  • Lead cost per placed policy: 8 x £50 = £400
  • Average initial commission: £150-£300 (depending on policy type and premium)
  • Trail commission: Additional income over years of policy persistency

Even on initial commission alone, the ROI is positive for most advisers. When you factor in trail commission and the potential for cross-selling (adding income protection, critical illness, or mortgage protection to the same client), the long-term value of each converted lead increases substantially.

For a personalised calculation, use our Lead ROI Calculator.

Common Pricing Mistakes to Avoid

When evaluating life insurance lead costs, watch out for these common pitfalls:

Choosing the cheapest option without checking quality. A £5 life insurance lead that nobody answers is infinitely more expensive than a £20 lead that converts. Always evaluate cost per conversion, not just cost per lead.

Not accounting for your time. If you spend 30 minutes chasing a bad lead, that's 30 minutes you could have spent with a qualified prospect. Cheaper leads often require more follow-up time, which has a real cost even if it doesn't show up on an invoice.

Ignoring the refund policy. A provider with leads at £12 and no refund policy may actually cost more than a provider at £18 with a clear replacement guarantee for invalid leads. Ask about refund rates — anything above 5-6% should raise concerns about lead quality.

Buying shared leads to save money. Shared life insurance leads are particularly problematic because life insurance is a considered purchase. Consumers who receive calls from three different advisers within minutes often disengage entirely, meaning nobody converts the lead.

Getting the Best Value from Life Insurance Leads

Regardless of what you pay per lead, the biggest influence on your ROI is your follow-up process. Life insurance leads have some specific characteristics that affect how you should approach them:

Life insurance is rarely urgent. Unlike mortgage leads where there's often a transaction deadline, life insurance consumers frequently describe their need as 'something I've been meaning to sort out.' This means your first call matters enormously — you need to create a reason for the consumer to act now rather than postponing again.

Education converts. Many consumers don't fully understand the difference between term and whole-of-life, or why income protection might matter more than life cover. Advisers who take a consultative, educational approach tend to convert significantly better than those who jump straight to quoting.

Cross-selling is substantial. A consumer who enquires about life insurance often also needs income protection, critical illness cover, or mortgage protection. The best-performing advisers treat each life insurance lead as a potential protection review rather than a single-product sale.

For more guidance on improving your conversion process, see our guide to converting insurance leads and our insurance broker intro scripts.