MoneySuperMarket has reported a sharp rise in interest in life insurance, as recent Inheritance Tax (IHT) changes have prompted more people to reassess their financial planning.
Analysis of search data revealed online queries for life insurance increased by 22% year-on-year, while searches for “affordable life insurance” surged by 425% between December 2025 and February 2026.
The spike comes amid policy changes including the planned inclusion of pension pots within IHT from 2027 and the continued freeze of the nil-rate threshold at £325,000.
The findings suggested a broader shift in behaviour, with more individuals exploring life insurance as a tool to help protect wealth for beneficiaries.
Despite this, awareness gaps remain, with 46% of people without life insurance never having obtained a quote, and 22% assuming cover would be too expensive.
Older consumers may be particularly exposed, with nearly half of those aged over 55 having never explored the cost of cover, despite being more likely to be impacted by IHT changes.
Kara Gammell, life insurance expert at MoneySuperMarket, said: “The Chancellor’s inheritance tax reforms have changed how many people think about life insurance and the role it can play in their financial planning.
“A whole-of-life policy written in trust may be a useful option for people who are worried about leaving their loved ones with a significant inheritance tax bill.
“Because the payout may sit outside the estate, it doesn’t usually form part of the estate for inheritance tax purposes. This means it could be used by beneficiaries to help cover the cost of inheritance tax.”
Gammell said: “Our analysis of search data shows that this conversation is reaching well beyond the traditionally wealthy.
“Searches for affordable cover and queries about health conditions are climbing sharply, which suggests people across a much broader income and age range are starting to ask whether life insurance is right for them – and that’s a positive shift.
“The good news is that cover is far more accessible and affordable than many people assume. Our data shows policies can start from as little as £2.64 a month, and the fact that almost half of over-55s have never checked the price of cover suggests there’s a huge opportunity for people to find out what they would pay. In many cases, I think they would be pleasantly surprised.”
