The number of young people purchasing life insurance has fallen to an all-time low, it has been revealed.

According to insurer, LifeSearch, despite life insurance, critical illness and income protection being cheaper for those aged 25 and under, fewer young people are purchasing the cover.

The firm found that only three per cent of all protection policies by the firm had accounted for young people in 2008.

Policy adviser, Matt Morris of LifeSearch warned of the importance of the cover for even the younger Brits.

He said: "Clearly more effort needs to be made to reach younger people. Many younger people have debts, mortgages and families that need financial protection in the event of the main income provider being unable to work.

Often they either buy no financial protection at all or rely on the internet to get the best deal. That might work with car insurance, but not with financial protection."

Life insurance is not only cheaper for younger people because of their age, but also because they are usually healthier which would help keep premiums low.