Almost two fifths of employees (39%) think benefits have become more important to them in the current economic instability.

A survey of 1,058 employees by Canada Life Group Insurance shows 60% would value employee benefits more if their health were to deteriorate and 31% think benefits would become more important if their family were to expand.

But only 9% have an income protection policy, 5% have group income protection and 3% have group critical illness cover.

Marion Ware, head of marketing for Canada Life, said: "The current climate has undoubtedly affected people's views on their finances, but this research goes to show just how much importance the ‘credit crunch' has placed on the value of benefits.

"But it is worrying to see that even though consumers are recognising the increased importance of benefits, very few have actually acted to take out individual protection products or have access to protection products through their employer."