One of the effects of the credit crunch, which is something we've all had to learn to live with, is that borrowers are failing to take out adequate insurance. "Too many of us just don't have the cash to spare, especially as loan costs are going up and things may already be very tight,' said one broker

It's not just those people who are embarking on new loans who risk being without life cover. There are existing borrowers who have had to cut back on their spending and may have cut back on their life cover, with every intention of picking it up again.

A competitive market means that rates for life cover have remained low. Life insurance is simple to understand and people can hardly be unaware of it. Leaflets at the supermarket checkout and inserts in magazines offer all types of life cover. There's a wide range of choices and the simplest way is to go on-line and find out what's on offer.

Usually, basic life cover is the first thing you think about and it's certainly a good place to start: however there are other types of cover you can take out. For instance, 'whole of life' cover means a set premium while 'decreasing' life assurance lowers your cover as your mortgage decreases. Whole of life cover pays out on your death, whilst term cover is just that. Cover for the term of the policy, which could end without any pay out. For this reason, term insurance tends to be cheaper.

But is it enough just to pay off your mortgage? What if you've had major extensions or alterations to your home and increased your mortgage or borrowed in some other way. Has the level of your life insurance been raised to cover that? Could you afford not to be covered?

Having sorted out the payment of your mortgage and any other debts, have you considered how your family would fare with the loss of the breadwinner. This is especially important whilst you still have children who depend on you. Work out just how much they would need to live at their present life style if your salary was no longer in place. It's quite an eye-opener, but something that certainly needs to be addressed.

If you're one of the millions of people without life cover, maybe it's time to give it some thought. It could be that you have some form of life insurance through your employer. It should be checked out. It may not be adequate but it could form some of your cover.

If you're considering a joint policy, check the cost against having two separate ones. It could be cheaper. Confirm that your premiums are fixed throughout the term of the policy, and then you know where you stand and are able to budget for the costs.

You need to know that the company you're dealing with is regulated by the Financial Services Agency, who is there to protect your interests and ensure that everything is carried out using their guidelines.

To make things easier for your dependents and to speed up payouts, have your policy written "in trust". This reduces the risk of their paying inheritance tax on it, too. This is a good time to make a will. No-one likes to think about this and it's all too easy to put it off, but it will make sure that your money goes exactly where you choose and avoids so many problems for your family.