Just 7 per cent of UK families feel they have adequate financial protection, according to a report by Aviva.
Aviva says 61 per cent of families do not have basic life insurance, 87 per cent of people do not have critical illness cover and 89 per cent do not have income protection.
Single parent families are least likely to have protection insurance. According to the report, 76 per cent of single parent families and 68 per cent of divorced parents with two or more children feel under protected or not protected at all.
When asked why they do not have protection insurance, 19 per cent say they think it is too expensive and 5 per cent believe it never pays out and is not worth buying.
The report also found families prioritise paying off unsecured debts and setting up savings accounts ahead of getting financial protection.
When asked what they would prioritise if they received a £10,000 windfall, 44 per cent of respondents told Aviva they would first pay off unsecured debts. Only 5 per cent said the money would make them want to take out protection.
Aviva head of protection marketing Louise Colley says: “Life insurance and income protection can provide families with financial peace of mind in the unfortunate event of a sudden loss of income, and critical illness insurance can provide a lump sum cash payment should the insured suffer serious illness or disease. By making sure they have financial protection in place, families can have invaluable peace of mind for a more financially secure future.”