Life cover remains the most widely held form of protection insurance with two thirds of adults in the UK being covered in the event of death. But the reasons we take it are varied and change with age.

20% of people are paying the premiums without knowing how much they are covered for shows a recent survey. Of the people who actually know how much they are covered for, on average, a typical adult is insured for £164,345 in the event of their death.

The survey, commissioned by cahoot, the internet bank, polled 1500 adults in the UK, to find out the most compelling reasons why people feel the need for protection insurance, and how much they are actually covered for.

Family security

Views differ on the need for protection across the age groups with under 35 year-olds realising the importance of ensuring the financial security of their family, with over 30% citing this as the main reason for taking out life cover.

Unemployment

The second most compelling reason adults in the UK take out protection insurance is to safeguard their income in the event of losing their job (16%).

Job security is at the forefront of people's minds, with 40% of adults describing the future of their job over the next 12 months as only fairly secure or not secure.

Regionally, adults in the south west (48%) and the midlands (47%) are most fearful of losing their job. However, in order to provide peace of mind in the event of losing their job, 27% have income protection cover, on average, of £25,125 per annum.

Being off work or unable to work due to accident, illness or injury has affected 42% of us, with one in three of being off work for more than 6 months. Longer-term absence affects all age groups, with 10% of 45-44 year olds being off for more than 2 years compared with 3% of 25-34 year olds.

Age divide

Half of adults aged 55 and above stated they have more than enough protection cover for their needs, compared with 24% of 25 - 34 year olds.

Not surprisingly, the most popular reason for taking out life cover is to protect a mortgage in the event of death (22%), but not everyone feels protection is necessary, with 6% stating they do not believe in insuring the unknown.

Deborah Cutler, cahoot's marketing director said:

"It's great news that more young people are taking control of their finances and protecting the needs of their dependents.”

“I would urge anyone, who is concerned about the level of protection insurance they have to review it soon, to ensure they have complete peace of mind."

Gone too are the days when people remained loyal to one insurance provider, says cahoot, with 80% of people prepared to shop around for cover and not just buy from one provider.

cahoot's complete peace of mind protection policies:

• Mortgage protection - life, critical illness and unemployment cover.
• Personal protection - life and critical illness cover.
• Personal accident insurance - lump sum payable.

For more information about cahoot's products and services, visit www.cahoot.com.