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The self-employed have a particular need for life insurance as 'they are responsible for all their own benefits', say insurance experts.

The Association of British Insurers (ABI) says that when a worker becomes self-employed they do not receive the benefits they may have when working for an employer.

Nick Kirwan, head of health and protection insurance for the ABI, says workers should immediately start thinking about their health as soon as they start working for themselves.

'If you're self-employed, absolutely everything does depend on you being healthy and being able to do your job,' he says.

He adds: 'As a nation we are hugely underinsured for life cover.'

In 2005 the Telegraph reported that Swiss Re, the world's largest life and health reinsurer, estimated that there was a £2.3 trillion shortfall in the amount of cover needed.

The ABI estimates that one in three Britons have no life insurance – and a further one in three have not renewed their life insurance cover for five years, so may be underinsured.

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