Four out of 10 parents with children under the age of 18 do not have any life insurance in place, according to new research, with around two thirds of these parents not having any critical illness cover.
Research from Sainsbury’s Bank Life Insurance, provided by Legal and General, also found that of those without life insurance, 21 per cent did not believe it was necessary and almost half (49 per cent) said they could not afford it.
A further 7 per cent said they used to have life insurance, but the increasing cost of living has made it no longer affordable.
Some 14 per cent said they planned to take out life insurance cover, but had not got around to doing it.
The research showed that among those with life insurance, 36 per cent have never reviewed their cover and just 10 per cent increased their cover as they had children.
Scott Gorman, head of Sainsbury’s Life Insurance, said: “Families should consider life insurance with critical illness protection as early as possible to cover their mortgage, any borrowing and other day-to-day commitments to ensure financial stability, if the worst happens.”
Paul Hately, global head of Swiss Re Protection Partners and board member of iptiQ, told FTAdviser that the protection gap for mortality insurance in the UK alone is well over $2,000bn (£1,290bn)
At the start of the month, an Aviva report found that the proportion of UK families with either income protection (8 per cent) or critical illness cover (11 per cent) is at 19 per cent, while 20 per cent have pet insurance.