New research suggests that three in five UK adults have no life insurance.
Public opinion researchers YouGov revealed in its Life and Health Protection 2015 report, published on 9 June, that 60 per cent of more than 2,000 people it surveyed had no life insurance of any kind.
Of these, only 17 per cent had had life cover in the past, down from 19 per cent in 2014.
Uptake of critical illness products was even lower, with only 12 per cent of respondents saying they currently had this type of cover.
More than a third (34 per cent) said that affordability was a barrier to taking out protection policies.
Almost a quarter (22 per cent) felt there was no need for insurance cover as they had no family or dependents while 29 per cent said they would consider having a policy if it was affordable.
Meanwhile, the findings of a survey of more than 1,400 people, published on 17 June by financial products firm Royal London, revealed that 28 per cent of UK adults who buy over-50s life insurance went on to cancel their policies, losing £86 million in premiums paid and £173 million in cover.
Jerry Toher, chief executive of Royal London’s consumer division, said: “Not all over-50s life insurance policies are the same – the underlying details can make thousands of pounds of difference to a customer.
“We urge customers considering this type of protection to shop around. But don’t just compare the price – take time to understand the product features and how it works to prevent getting caught out.
“Armed with this new evidence, we are investigating how we can help more customers reach better outcomes. We now invite other organisations working in this space to respond and suggest ways to improve our market, so it works better for customers.”