One in seven people have named a charity or good cause as a beneficiary of their life insurance policy, a survey has found.

The findings have emerged in a survey of 2,000 people by price comparison website Compare the Market.

Naming a charity as a beneficiary of a life insurance policy is the third most popular option, behind nominating an unmarried life partner or a lifelong friend, which are mentioned by more than one in five people in both cases. One in 14 people nominate a mentee or a young person who is not a relative.

The website says the finding show how “the definition of family is widening to reflect modern living” and that around 8.4m people live alone.

It also notes that the proportion of people leaving life insurance policy money to charities comes amid increasing interest in leaving gifts to good causes in wills. Legacy income was worth £4.5bn to charities in 2024 and 145,000 people left a gift to charity in their will last year, up 15% on the previous year.

"Closeness becomes defined more by how safe and understood a person feels rather than by any shared history or genetics,” said clinical psychologist Dr Daniel Glazer, who has commented on the findings.

“The families we choose are the ones who see who we really are, and that can be much more emotionally meaningful than prescribed family roles.”

Compare the Market life insurance expert Emily Barnett added: “Life insurance should reflect your real-life dynamics, not just a legal definition of a family tree.

“Whether it’s a partner you aren't married to, a close friend, or a cause you care about, your policy should protect the people who matter most to you.”

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