Just 7% of UK families feel financially protected while 61% have no life insurance at all, according to new research.
Aviva's Family Finances Report also reveals that 87% have no critical illness insurance while 89% do not have income protection.
Perhaps unsurprisingly, single parent families were the family unit most likely not to have protection insurance.
However the lack of coverage may be hitting home as these were also the most likely to feel financially vulnerable as a result of this with three-quarters (76%) saying they felt under or unprotected.
Divorced parents with two or more children were the next most vulnerable as 68% acknowledged their insecurity.
The report found it ‘disturbing' that 42% of families admit they have been seriously affected by illness and yet still do not have any protection insurance in place.
It continued: "The seriousness of this situation is highlighted by the fact that of those families who've been affected by illness, 25% of families testify they've already experienced what it is like when one of the main breadwinners is unable to work due to illness.
"A further 15% have seen a family member unable to work due to either stress, depression, or mental health issues, and 7% say they've witnessed a family member give up work to look after another family member," it added.
Louise Colley, head of protection marketing at Aviva, explained that different family groups all face different economic pressures.
"But one thing that links all families is a desire to protect loved ones from unforeseen shocks," she said.
"The bedrock of any financial planning should look at what measures are in place in case the worst were to happen. If this is ignored then any financial plans are set in sand with no firm foundation.
"By making sure they have financial protection in place, families can have invaluable peace of mind for a more financially secure future," she added.
Based on customer profiles and government data the provider has recognised the seven most common types of modern family as:
• Living in a committed relationship (either married or living together) with no plans to have children
• Living in a committed relationship with plans to have children
• Living in a committed relationship with one child
• Living in a committed relationship with two or more children
• Divorced/separated/widowed with one child
• Divorced/separated/widowed with two or more children
• Single parent raising one or more children alone.
