Over four out of 10 people (44%) with children aged 18 or under, or who are married and in a long-term relationship, don’t have life insurance, according to Specialists4Protection.co.uk.

The new specialist life and protection advisory firm added that, worryingly, this figure rises to 72% when considering those without critical illness cover.

It also warned that of those people with cover, the vast majority are hugely under-insured. Around 23% of those with life insurance only have enough to cover one year’s salary, and a further 19% have the equivalent of just two years’ income.

Depending on the age of your dependants, Specialists4Protection.co.uk claimed that people should have nearer 20 times their annual salary in life cover – something only 3% of people with cover actually have.

Paul Litster, managing director of the firm, said: “It’s alarming to see how many people who should have life insurance don’t, but also how underinsured most people with this cover are.

“If you have dependants, having adequate life insurance is one of the most important financial decisions you will ever make, but many people tend to just pluck a figure from the air when deciding on their level of cover without working out what their loved ones would need should they die.”