One in three Britons does not have a
life insurance policy, according to the Association of British Insurers (ABI), and more may be underinsured.
Nick Kirwan, head of health and protection insurance at ABI, said that most people take out
life insurance policies with their mortgage to pay off the loan in the event of death.
However, he stated that many Britons are failing to ensure that they are covered at other key points in their lives, such as starting a family.
"If people start a family, that's a time when the need for
life insurance particularly shoots up. Sadly, there isn't really an easy mechanism for getting that message to people," Mr Kirwan continued.
In 2005, Swiss Re, a health reinsurer, estimated that there was a £2.3 trillion shortfall between the expenses of UK families and the actual coverage offered by their
life insurance policies.
Mr Kirwan advised that many people are unaware of how cheap
life insurance policies can be.