Two-thirds risking debt by “over-estimating” protection

Life insurance can protect against mortgage arrears and other debt management problems that may arise from a sudden lack of income, but many people are shunning cover because they believe it is too expensive, a poll has found.

Figures from YouGov, released by Legal & General, found 65 per cent of people over-estimated the price of £150,000 worth of life cover.

A healthy, non-smoking man aged 25 can expect to find life insurance for £8 per month, according to the financial services company.

However, of the people polled, 22 per cent thought it would cost over £30 and 18 per cent believed they could pay between £21 and £30. A quarter (24 per cent) expected to pay between £11 and £20.

Commercial director for housing at the company Karen Blatchford said life insurance cover can cost as little as £6 a month yet only 38 per cent of people surveyed have cover.

She added: “People may wish to consider covering not just their mortgage debt, but their family expenditure and bills.

“Most families would really struggle if there was an unexpected drop in the household income.”

According to National Statistics, 3.06 million working-age households are not in work.

By Morwenna Kearns