5 common reasons for the £2 trillion protection gap

Despite sales of life assurance climbing steeply over the last few years, the protection gap (the difference between the life cover we have and what we should have) still stands at over £2 trillion.

Some people find it easier not to think about why they might need life assurance so avoid any uncomfortable conversations, but if they stopped to think about the consequences, would probably be over insured.

London & Country (L&C) look to answer 5 common excuses, in a bid to encourage those with dependents particularly to revisit this important area before it's too late.

1."It's too expensive" The cost of life assurance has been falling for many years and can often be less than applicants spend on car or house insurance.

For example, a 30 year old couple could have £150,000 cover for the next 20 years for a fixed monthly cost of £12.96, less than the cost of one takeaway pizza each every month, and much better for them.

2. We already have life assurance. Even if you already have sufficient cover over the right term (rare, as families grow and mortgages are extended), with premiums having fallen so much there is still value in comparing costs. One L&C client reduced their costs by £130 per month for the same amount of cover over the same term.

3. The state will pay. How wrong can you be. While any surviving partner could be entitled to a bereavement payment (£2,000), help with funeral costs or further benefits if they have dependent children, these are unlikely to allow the surviving family to repay a mortgage or maintain their standard of living.

4. I have life cover through work. Many employees provide life assurance as a benefit within the company pension scheme. This is limited to a maximum of 4 x the employees' income, and is lost should you change employers.

5. I'm single so I don't need it - Quite right. Life assurance for single borrowers is of little value, but is essential for couples or those with dependent children. Single applicants should look to protect their income in case of serious or long term illness.

There are many formulae on how much and what type of cover you need, but critical to any decision is getting the right advice, helping you match the options from a wide range of providers to your needs.

Having sufficient cover to clear any mortgage and debts, as well as maintain the family standard of living is ideal, but the premiums must be sustainable so cost it king. It is better to have some cover at a price you can afford, than to have all the bells & whistles, but cancel the policy if you can't afford it.

For more information and no-fee advice, visit lcplc.co.uk