More than one in three people in the UK (43%) don’t have any financial provision in place to pay for their financial commitments in the event of their death. And this is despite the fact that almost two thirds of people (65%) recognise that they should have insurance in place to protect their families from financial difficulty.

This gloomy information was uncovered by Alliance & Leicester’s latest survey, the ‘wealth tracker index’.

It is often easier to ‘live for today’ rather than worry about tomorrow. The findings suggest that, although people are aware they should have provision in place to meet debts and other commitments in the event of their death, very few put this into practice, leaving their family’s lifestyle exposed should the worst happen.

Paula O’Reilly, Product Manager for Life Assurance at Alliance & Leicester said: “The findings show a huge divide between the expenses that people would like to protect in the event of their death, compared to what cover they actually have in place.”

“But it also shows that most people do not see the financial impact that a bereavement could have on their dependents’ lifestyle.”

“It is understandably difficult to think about planning for your death. However, for around the cost of a newspaper each day, most people could ensure their family is left with a lump sum, that avoids worry and would allow their current lifestyle to continue at a time when they need it most. A financial review with a qualified adviser is the easiest way to put your mind at rest.”

Key findings of A&L’s survey:

Mortgage: 37% of people believe that they should have cover in place to protect mortgage payments in the event of their death, however, only 29% currently protect these payments. Men are more concerned than women about the cost of covering the mortgage (44% vs. 30%).

Household bills: In order to maintain their current lifestyle, 19% of people think their household bills should be covered, but only 11% of people have this cover in place.

Education and childcare: Providing stability and normality for children, such as schooling, is an important consideration after a bereavement of a parent but only 12% of people think that educational costs should be protected. For those who pay for their child’s education, only 3% currently have any cover in place to meet these costs. A further 9% of people would like the cost of childcare for their children covered by a policy.

Transport: One in four people (24%) believe that protecting the payments on their family car is essential and the same number (25%) currently have cover in place to protect their payments.

Private Healthcare: 22% of people recognise the need for their family to continue with the best healthcare after their death but only 12% have this provision covered.

Regional findings:

The Scots (47%) are the biggest believers that people should cover mortgage payments in the event of death, and, along with people living in the North of the country, 39% currently have this cover in place.

Transport is a major concern for people living in the West Midlands, 37% of people currently have insurance in place to cover the costs of running a car compared to only 19% of those in Wales.

East Anglians think that covering the cost of private healthcare for their family is important (36%), despite the fact that 11% of people in the region currently have cover in place to pay for healthcare, compared to 17% of people on the South East region.