Britons 'failing to take out protective insurance'

On average Britons could be underinsured against loss of income by £14,500 a year.

A significant number of Britons do not have adequate life policy insurance.

The research, released by Friends Provident, surveyed 2,000 adults and found that nearly half had no insurance in place to guard against loss of income through illness or death.

Even those thinking about cover were considering buying insurance cheap enough to leave them uninsured by an average of £14,500 a year.

Meanwhile, a third of people surveyed thought they would be able to cope with a 65 per cent reduction in their take home pay.

However, Ed Stuart-Brown, head of protection sales at Friends Provident, was alarmed that Britons believe they can get by on so little.

Mr Stuart-Brown said: "It's time people took control of their future and looked at this in a responsible way, instead of burying their heads in the sand, especially in today's environment. Ignorance is not bliss, it's irresponsible."

A study commissioned by F&C Investments last month showed 22 per cent of 35 to 45-year-olds had neither a will or adequate life insurance in place.

By Nate Sawyer