Four in ten Britons are afraid that getting a serious illness would be a significant detriment to their living standards, according to research.
More than a quarter (27%) added that their partner becoming seriously ill would also affect their standard of living.
The Financial Safety Net report from Bright Grey revealed that the fear of the financial effects of becoming seriously ill (39%) was on a par with that of losing a job and not finding another one (40%).
It also surpassed that of a rise in inflation (32%), their partner losing their job (25%) and an interest rate rise (15%).
However, a fifth (19%) were not afraid of any potential problems affecting their quality of life.
The report also revealed that Britons only see themselves in financial difficulty when they owe £14,416 worth of debt.
Perhaps encouragingly, this figure has dropped by £1,421 since 2010, but many are still not protecting their families despite becoming increasingly aware of the financial risks they are running.
The main reason cited for not having a protection product was the cost; 46% of people suggested that protection products were too expensive compared to 39% last year.
One in five people (19%) said the products were unnecessary as they could rely on savings, while over one in ten (11%) said they would prefer to spend the money on other things.
Roger Edwards, proposition director at Bright Grey, said: "Over the past 12 months, Britons are sitting up and taking greater notice of the wider economic environment and people are more wary about getting themselves into serious levels of personal debt, yet over £14,000 is still clearly a cause for concern.
"As a result, Britons need to keep control of their finances and have contingency plans in place to be able to continue to pay for their essential monthly outgoings.
"People are becoming increasingly aware of the impact of high debt yet are still failing take out adequate protection.
"Britons need to make financial provisions for their future and not live under the hope that state benefits or bail outs from family and friends will allow them to maintain their standard of living.
"Protection products are cheaper than ever and it is crucial that people recognise the significance of putting an appropriate financial safety net in place," he added.
The insurer noted that it was not surprised people perceived protection insurance as too expensive but suggested that most were grossly overestimating its true cost.
