More than half of UK adults hold no life insurance despite being highly aware of the importance of having it and other protection products, according to research.
The Scottish Widows Consumer Protection Report found that ensuring financial security is seen as a luxury compared to essentials such as broadband internet or a mobile phone.
It also found that more adults insure their pets and mobile phones than purchase income protection.
The provider surveyed over 5,000 people for its third annual study and found that although 54% of the population review their finances one or twice a year and awareness of protection is high, the take up remains 'exceptionally low'.
Almost all those questioned by YouGov (97%) said they were aware of life insurance and its importance but just 44% had cover.
This was repeated for both critical illness (CI), where 86% were aware of it but only 12% had taken out cover, and income protection (IP), where the results were even worse with 83% knowing about it but just 7% buying a policy.
Cost is still seen as a major factor in not buying protection, with 23% stating they could not afford life insurance and 26% for CI.
Providing financial security also appears to be less important than lifestyle, with more people saying broadband internet (69%) and their mobile phone (55%) were essentials compared to 35% saying the same about ensuring financial security if they were unable to work.
This was further highlighted by a fifth (20%) of respondents saying they would cut back on protection insurance compared to 15% who said they would consider reducing internet costs, if the need arose.
Clive Allison, market director for protection at Scottish Widows, was concerned by the findings and called on the industry to help raise awareness of the risks of not protecting family finances.
"We realise that many people do not like to plan for the unknown, however the importance of doing so cannot be underestimated," he said.
"Our research shows the majority of people clearly understand the benefits associated with protection products, but that many still don't adequately protect themselves and their families.
"The industry still needs to do more to highlight these benefits to ensure take-up increases, especially in an environment where welfare provision is being eroded and government is promoting the need for greater self reliance," he added.
