Millions of Britons are exposing themselves to financial risks because of a general assumption that life insurance is very expensive, according to a new survey.

The study by Legal and General also found that 65% over-estimated the cost of taking out a life insurance cover worth £150,000.

Some 35% of respondents also over-estimated the cost of adding a critical illness option to a life insurance policy.

Earlier this month, another research carried out by the Post Office revealed that millions of Britons have no life insurance cover despite continued drop in the price of policy.

However, the new report by life insurance provider Legal and General shows that 38% of Britons do not have any life cover.

The Post Office survey also showed that 28% of Britons interviewed cited high cost of premiums as the main reason for not taking cover. The statistics come at a time when the cost of life insurance has recorded a 70% fall over the last 30 years.

Karen Blatchford, commercial director for housing at the lender, said: "We're concerned that two-thirds of people are over-estimating the costs of protection, people may wish to consider covering not just their mortgage debt, but their family expenditure and bills."