Life insurance and other protection company, Legal and General claim that families should be protecting their lifestyle and mortgage, with appropriate insurance measures, even if the credit crunch is pinching household budgets. Legal and General offer ‘Family Personal Income Plans’ as a bolt-on to a life insurance policy, or as a stand alone policy.

Bonnie Burns, product Marketing Director of Protection at L&G, reportedly said: “Anyone with a mortgage is likely to be worrying about how much their payments might rise if they have to re-mortgage this year. This is set against a backdrop of higher council tax, higher food and petrol bills and slow wage increases.

“The question on many people's lips could therefore be ‘can I afford protection?' but the question should be ‘can I afford not to have it'! Most families' finances would unravel if a parent died or became too ill to work. They are risking their futures by not protecting their key asset - their future income. It is just as important to cover your bills as it is to cover your mortgage payments.

“Bringing up children is expensive and any parent has felt the impact of reduced household income due to a Mum or Dad taking a career break to look after their kids. Imagine if either that main or secondary income were to disappear permanently due to the parent passing away. That could be a financial disaster.”