Over 16 million UK adults said private medical insurance was essential, but only 3.6 million bought a policy in the last two years, research from The Exeter found.
The study showed more than a third of people saw insurance for private hospitals and treatment as essential.
Despite this, just 8% had bought private health insurance in the past two years.
The gap was put down to NHS pressures and people wanting faster care.
Insurance paying a lump sum on death was picked as the second most important, with 33% of people, or 14.7 million working-age adults, saying it mattered to them.
Income protection, which pays a monthly amount if someone can’t work due to illness or injury, was also rated important by 32%, while 30% valued cover for serious illness, like cancer or a heart attack.
Home insurance was the most bought non-compulsory cover, with 34% of people getting building or contents policies in the past two years.
Travel insurance followed at 33% and only 7% bought income protection and 12% bought critical illness cover.
Private health insurance was bought by 8% and another 8% got it from an employer.
The research found people were more likely to insure their possessions than their health or income, despite products being available.
Steve Bryan, director of distribution and marketing at The Exeter, said: “The gap between consumers recognising the importance of private health insurance, income protection and life insurance products, compared to the actual number of purchases is worrying.
“It’s natural to want to protect your assets, such as your home and belongings, but it’s equally as important to look after our health and income – things that we can often take for granted.
“I would urge anyone who has considered buying a health or life insurance product in the past, but hasn’t, to look at the options available to them.”
Bryan added: “A conversation with a financial adviser is also hugely important to see what options best meet their needs.
“There is also more to be done to increase general consumer awareness of the products that are available.
“This is something that will take time to achieve but advisers and insurers will continue to work together to ensure products are more accessible and become an important part of everyday financial planning conversations.”
