Head of health and protection insurance for the ABI Nick Kirwan, says that becoming self-employed is: ‘ a time when they might well be giving up some life insurance that their employer has been providing in the past.

All of a sudden they become responsible for all of their own benefits – they don't get sick pay any more. If you're self-employed, absolutely everything does depend on you being healthy and being able to do your job. '

Typical reason for not taking out life insurance have been for 23% too costly, and 21% not deemed necessary.

Graham Harvey, managing director of protection at Axa believes: ‘It is particularly worrying to see how many people say they think protection insurance is either too expensive or that they don't need it and this underlines the educational job that is still required to ensure more UK adults view adequate protection as a key part of their long term financial planning.'

Taking out life insurance when you are younger is more financially of use than later on in life, and people need to be aware of it.

‘ There is a tendency when you're young to think that you will live forever and that life insurance is for old people. But what will happen if you are suddenly taken ill and unable to work? You might be able to survive on sickness benefit but you wouldn't have a very good standard of living. Under these circumstances, the right sort of insurance could make all the difference.' says Keith Clark, a Fellow of the Chartered Insurance Institute.