Consumers believe that the cost of protection products is the main reason that people do not take out cover, according to Aegon Scottish Equitable research.
The company asked 1,300 people why British consumers do not have enough financial protection.
Nearly 40 per cent say protection is too expensive while over 20 per cent believe that the public’s lack of trust in insurance providers is putting people off because they do not expect a payout.
Almost 14 per cent of people say consumers do not like to think about the worst happening and 13 per cent believe a lack of understanding of protection products is preventing people taking out cover. Eleven per cent say financial protection is not considered a priority.
Aegon spokesman Mark Locke says the results are surprising as people can get decent protection for as little as £20 or £30 a month.
He says: “I suspect that the reason is a general lack of knowledge of the amount of cover or even the type of product people need.
“We found that many people would consider £10 a week a bargain if it ensured that their family would be able to cope financially if they died or keep a roof over their head if they were unable to work through ill health. This suggests that people would buy more insurance if they knew how affordable it was.”