It is particularly vital to take out life insurance if you are self-employed, according to the Association of British Insurers. They are urging those going into business for themselves to think about the employee benefits that they will be losing out on when they become their own boss. Company policies such as sick pay will no longer be available meaning that a spell of illness or injury could have serious financial ramifications.

Nick Kirwan, head of health and protection insurance for the ABI, says that becoming self-employed is: ‘a time when they might well be giving up some life insurance that their employer has been providing in the past. All of a sudden they become responsible for all of their own benefits – they don't get sick pay any more.’ Mr. Kirwan also emphasises that, without life insurance, being self-employed requires you to remain permanently super-fit: ‘If you're self employed, absolutely everything does depend on you being healthy and being able to do your job.’

The ABI’s comments highlight a general lack of life insurance cover across the board. One in three Britons hav