Families are being urged by leading insurance companies to protect their mortgage and their lifestyle with the appropriate insurance as the realities of the credit crunch begins to take effect. .

Following news that life cover policies are on the decline Legal & General have reacted by painting a depressing picture to the British population.

Bonnie Burns, Product Marketing Director of Protection says: "Anyone with a mortgage is likely to be worrying about how much their payments might rise if they have to remortgage 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'!''

She continued, ''Most families' finances would unravel if a parent died or became too ill to work. 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."

This follows news from Deloitte showing that a quarter of the nation plan to cut back on the insurance policy's they already have.