One life insurance company is urging more young people to take out life cover; the research carried out by LifeSearch discovered that only 3 per cent of policies sold in 2008 where to people under the age of 25. The firm claim that young people who take out critical illness, life insurance, and income protection policies could save a substantial amount than waiting until they are older; this is due to their age and better health.

Matt Morris, a LifeSearch policy adviser, said more effort needs to be made to impress the importance of life insurance on younger people.

He stated: "Many younger people have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work. Often they either buy no financial protection at all or rely on the internet to get the best deal."