Legal & General have released figures which show that the average consumer thinks that life insurance policies are too expensive without checking to see if this is actually the case.

Over the course of the study, of all the people polled, 65 per cent were found to have inaccurately predicted the premium cost for a policy worth £150,000. All thought that the cost would be more than it actually was and most cited this judgement as the main reason why they have declined to take out cover.

Legal & General's commercial director for housing Karen Blatchford commented: "Life cover can start from as little as £6 per month, which even families on a very tight budget may be able to afford."

The policy also revealed that only just over 30% of Britons own life insurance in spite of rising funeral costs and a troubled economy.