The gap between the level of life insurance cover held by Brits and the level that they should have stands at £2trillion, according to L&C.
The protection provider says that while life insurance sales have climbed steadily in recent years, the £2trillion gap means that the futures of many people's dependents are still being put in jeopardy.
In addition to simply preferring not to think of the possible circumstances that would necessitate making a life insurance claim, L&C believes that there are five other primary reasons why so many Brits resist taking out adequate life insurance.
L&C has identified the perceived cost of life insurance as the most common excuse for having insufficient protection in place, but, it says, life insurance premiums have been falling for many years and can often be cheaper than those for home or car insurance; for example, it could cost £12.96 a month for a couple taking out £150,000 of cover over 20 years.
Some already have life insurance in place, but L&C argues that they might not have updated their cover to meet their changing circumstances, or that they could save money by switching because premiums have been coming down, with one client saving £130 a month on the same cover simply by switching policies.
Many people wrongly assume that the state will pay any costs on the event of their death, such as funeral costs or other benefits if they have dependents, but this is unlikely to cover the cost of the mortgage for the remaining family members, L&C warns, or to maintain their standard of living.
While some insist that they have life insurance provided by their employer, L&C urges them to consider the fact that this is usually limited to four times their salary, and will be lost if they switch jobs.
Being single is another common reason given for not taking out life insurance, which L&C agrees is fair enough, but reminds singles that income protection might be worthwhile in case of serious or long-term illness. Cover is essential for couples, meanwhile, or anyone with dependent children.
"There are many formulae on how much and what type of cover you need," L&C says, "but critical to any decision is getting the right advice, helping you match the options from a wide range of providers to your needs.
"Having sufficient cover to clear any mortgage and debts, as well as maintain the family standard of living is ideal, but the premiums must be sustainable so cost is king. It is better to have some cover at a price you can afford, than to have all the bells & whistles, but cancel the policy if you can't afford it."
© Fair Investment Company Ltd