Just 11.2 per cent of Brits are choosing whole-of-life insurance based on what the policy offers, which could risk someone's loved ones missing out on financial support if the main breadwinner dies.
That is according to research by Datamonitor, which revealed on November 23rd, that only 3.6 per cent of consumers choose long-term care insurance based on its features.
The research firm is urging consumers to choose a life insurance policy for its cover and features rather than its price.
It also wants consumers to be educated about the importance of getting cover in case they fall ill, lose their job or die, meaning they can no longer work.
Mya Myat Moe, analyst at the company, said: "Consumers don't realise that now more than ever, they need to ensure they have the right sort of cover for protection insurance which includes term assurance, critical illness, income protection, whole-of-life and long-term care."
She added that many Brits are shouldering debts and should make sure that if the worst happens their loved ones are protected.
One way in which a consumer can see what each life insurance policy includes is by using a price comparison site such as moneyexpert.com.
Life insurance is important as it supports your family and dependants by covering your debts and replacing your income if you die or are seriously injured.
Some policies also include cover for funeral costs, mortgage repayments and protection over family inheritance.
Cover is paid monthly or annually and a set amount of money that will be paid in case the policy holder dies is agreed based on this.
The main thing to bear in mind when obtaining life insurance is not to lie in your application as this can invalidate a claim.
It is important to mention any health problems or issues such as a bad back or smoking on the application.
A price comparison site can also keep a person updated about the cheapest version of life insurance currently on the market as prices can change regularly.
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