The gap in people taking out life insurance is growing.
Figures from the latest Swiss Re Term and Health Watch 2012 show that the UK's life insurance gap – the difference between what cover is needed and what is actually being taken out – has grown to £2.4 trillion from £2 trillion in the past ten years and on average this amounts to £100,000 per person.
It means an increasing number of individuals are taking a risk with the financial security of any dependents, with single parents, couples with children and those aged 35 and under least likely to have any cover.
Swiss Re's UK chief executive officer Russell Higginbotham remarked: "Under-insurance in both the life insurance and income protection areas is proving to be a long-term problem in the UK."
He added it is up to the industry to better communicate the benefits of life insurance, such as the fact it alleviates the financial burden placed on those left behind.
The study also discovered the gap in income protection has increased by 46 per cent in the past decade, with the annual deficit now at £130 billion.