Only 39 per cent of consumers consider providing financial security for their family in the event of death as essential, compared to 80 per cent who consider broadband vital for daily living, according to the Scottish Widows Protection Report.

Other findings tell a similar story, with 71 per cent ranking mobile phones as essential, compared to 28 per cent who felt protecting finances for dependents in the event of becoming critically ill or a partner being unable to work was a necessity.

Four years ago, over 50 per cent of consumers believed ensuring their family’s financial wellbeing in the event of their passing was a crucial daily consideration.

The report speculates that this decline could leave a significant proportion of the UK’s 14.5 million mortgage holders and their families at risk of losing their homes, by failing to have adequate protection in place.

Just a third of the UK population has a life insurance policy, while 8 per cent has critical illness cover and 4 per cent has income protection insurance, according to Scottish Widows.

People aged 35-44 were most likely to have protection, with those who had mortgages most likely to own financial protection products. Almost 45 per cent of 35-49s feel life insurance is essential, with 24 per cent of the same group feeling that protecting their or their partner’s income is essential, compared to 18 per cent of the general population.

Despite this, just under a quarter of those polled didn’t know how long they could pay the mortgage for, or said they would run out of money within five months if they lost significant income.

Against an average £1,085 monthly cost of running the home, and 35 per cent of people carrying non-mortgage debt over each month, a vast proportion remain at risk if the unexpected were to happen to themselves or a loved one without this type of safety net in place.

Almost half said they could live on a single income if necessary, by cutting back on spending (43 per cent), using savings (38 per cent) or relying on the state (27 per cent) for support if one wage earner was unable to work for six months or more. 8 per cent would claim on an insurance policy. A quarter don’t know how they would cope.

Esther Dijkstra, head of protection at Scottish Widows, said: “The Mortgage Market Review has changed the way lenders look at lifestyles and expenditure. This greater scrutiny, along with more people taking mortgages and potentially longer repayment terms, means that we should be reassessing our financial priorities. Yet more people pay attention to making sure their possessions are insured than their own lives.

“Although short-term priorities tend to dominate when it comes to the way we assess our needs and spending, it is more important now than ever to have an appropriate plan in place at the right time to protect our homes and families, not only for peace of mind but to safeguard the time and money we invest throughout working life for the future.”

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