The survey of 2,000 people conducted by OnePoll revealed myths around costs and payouts were the main reasons people did not take out a plan.
Some 46 per cent believed life insurance was too expensive, despite data analysed by the comparison site showing average life insurance per £100,000 of cover was £10.96.
This was just a quarter of the £45 monthly average homeowners spent on entertainment services such as Netflix, Spotify and Amazon Prime.
Depending on the age of the claimant, those aged between 18-29 and 30-39 pay an average of £5.80 and £7.92 per month respectively on life insurance. Average monthly costs increase to £20 per month for those aged 50 and over.
The study also found that 14 per cent of respondents thought there was no point in taking out life insurance as insurers never paid the money out.
A further 13 per cent did not consider taking out life cover as it was “too depressing” to think about.
Neal Cross, senior commercial performance manager at MoneySupermarket, said: “For so many of us, life insurance can seem like the last thing we need but the reality is that it’s an essential piece of protection, particularly if you’re a homeowner or have dependents.
“For many of us, life insurance isn’t expensive and will likely cost a fraction of what a typical household spends on their home entertainment subscriptions. It’s also the case that if you take out a policy when you’re younger, you’ll probably benefit from cheaper premiums as insurers view you as being less likely to develop any serious illnesses.”
He added: “Doing your best to keep fit and healthy is also a good way of keeping your premiums down.
“Whether you’re a homeowner or first-time buyer who’s looking to take advantage of the government’s stamp duty extension, life insurance provides financial protection once you’ve completed your purchase.”