UK's insurance protection gap

There is a £2.3 trillion protection gap in the UK, mainly due to people taking out mortgages without having sufficient life insurance, according to Sainsbury's Bank.

According to a spokesperson for the bank, anyone over 18 with a family should think about protecting them by taking out life insurance.

Figures from the Association of British Insurers indicate that £160 million was paid out in pension and life insurance in 2005.

But one in three Britons has no life insurance and many do not renew their policies.

Claire Moyles, of Sainsbury's Bank, said: "There's a £2.3 trillion protection gap in the UK so there's a massive amount of underprotection. It's obviously not top of everyone's agenda.

"Part of the reason the gap exists is because people are taking out a mortgage without any life insurance."

She advised: "Anybody aged 18 plus with a family really needs to be thinking about protecting their family and protecting their mortgage."