Just under one in two people (48%) said rising costs are forcing them to make difficult decisions about their budgets which is why they don’t have life cover.

According to the survey by insurer Beagle Street, a third of 18-40 year olds don’t believe they can afford life insurance, while one in five said the cost-of-living crisis means they have no spare cash left to buy cover.

The 2,000 respondents in the study were also quizzed about why they had cancelled their life insurance policy. For 38%, they did so due to rising food prices.

As well as the cost of grocery shopping influencing people to cancel their policy, the rise in energy bills was also a factor among 36% of respondents.

Hikes in rent prices and inflation not matching salaries has also contributed to around one in four cancelling their life insurance.

But for those with life insurance, 53% said the purpose of it is to provide a lump sum to support their family if they died, 39% said it would pay off their mortgage and 27% said it would cover the cost of a funeral.

‘Difficult decisions’

Beagle Street managing director, Alistair Rose said: “The cost-of-living crisis is affecting all of us and it’s forcing people to make incredibly difficult decisions around their budgets.

“This research highlights that the current economic situation isn’t just affecting day-to-day financial choices, but also difficult decisions that will have a lasting impact on entire families.”