The latest Wealth Tracker Index from Alliance & Leicester shows that almost one in two British people have no protection to cover their financial commitments in the event of illness or death - despite having monthly outgoings of more than £1,400.
The 2,000 people questioned as part of the building society's annual study revealed a worrying lack of awareness about life insurance that could put their financial security, and that of their family, at risk.
Despite the fact that almost nine in ten people surveyed are committed to paying monthly household bills, just four per cent of them have cover in place to ensure the bills are still paid should anything happen to them.
Similarly, two-thirds of British people make credit card payments worth an average of £258, but 75 per cent have no life insurance protection.
Sarah Ennion, product manager at Alliance & Leicester, pointed out that whilst many people are aware of the need to cover their mortgage payments, many forget to protect their other financial commitments.
With life protection, people can ensure their families do not have to suffer financial problems as well as the distress of death or illness of their relative.
"For example - if the main income earner in a family died or was unable to work due to illness, the household bills would continue to come in, the car loan would still need to be paid and so would the children's school fees," Ms Ennion stated.Click here to get a life insurance quote.
© DeHavilland Information Services plc