The life insurance industry is putting off potential customers by "over-inflating" the amount of cover they need, according to Beagle Street.
The provider said, for many years, life insurers have led people to believe they should have many times their salary in life cover.
It contends people could obtain adequate cover with an inexpensive policy as life insurance has become affordable.
Matthew Gledhill, director at Beagle Street, said: "It's little wonder so many Britons have no life insurance when they are being told they need hundreds of thousands in cover.
"With today's financial pressures, it's more realistic to look at what is affordable - not just agree to the first option they are offered.
"Just a few thousand pounds makes a significant difference to a family in the event of death - and provides some comfort at a very stressful time."
The group added the confusing and time-consuming buying process is also an off-put for potential consumers.
Last week research published by Tesco Bank Life Insurance revealed many parents do not currently have life insurance because they think it is unaffordable.
