Two-thirds of people over-estimate the cost of taking out life insurance, it has been claimed.
According to research conducted by Legal and General, 65 per cent of people polled thought that taking out life cover worth £150,000 was more expensive than it is, while 35 per cent over-estimated the cost of adding critical illness cover to their policies.
The company asserts that people can actually take out life cover for £6 per month and suggested that some people may not be opting for life protection as they think it is too expensive.
Commenting on these findings, Karen Blatchford, commercial director for housing at Legal and General, said: "Just 38 per cent of the people we surveyed have life insurance, which is cause for concern. People may wish to consider covering not just their mortgage debt, but their family expenditure and bills."
She added that many people may wish to consider how they would manage to meet their financial obligations if their household income dropped.
Meanwhile, the Financial Standard recently reported that Barclays Bank has teamed with Norwich Union to provide life insurance offerings online.




