41% of mortgage holders not protected by life cover
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Four out of 10 mortgage borrowers in Britain (41%) do not have life insurance that covers their mortgage payments, according to research by Sainsbury’s Life Insurance.
On average, those with a mortgage that is not covered by life protection have an outstanding balance of £36,000.
Sainsbury’s says it is particularly worrying that many of those who are likely to have dependants are unprotected, with 33% of 35 to 44 year olds, and 30% of 45 to 54 year olds, not having life cover for their mortgage.
Helen Williams, head of Sainsbury’s Life Insurance, says: “Mortgage repayments are one of the biggest financial commitments in many peoples’ lives but, as our research shows, unfortunately it is not something that enough mortgage holders have taken steps to protect.
“Having life insurance gives those with a family peace of mind that should the unthinkable happen and they die, their dependants can continue living in the family home with the lifestyle they have without worrying about the financial implications.
“We would urge anyone who doesn’t have life insurance to consider taking out a policy, and those who do and have moved to a bigger house to make sure it is updated to reflect their mortgage commitment.”
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Readers' comments (1)
david streat | 19 Mar 2012 12:25 pm
I truely believe that every home owner with a mortgage should have life assurance as part of the mortgage process. If this was made manditory there wouldn't be so many people losing there homes should a loved one die. Not only that if life cover was made mandatory as part of the mortgage process there would be less financial strain on the tax payer.
As Winston Churchill sonce said if he had his way he would have nailed above every doorway in the land the words LIFE INSURANCE to ensure every person with financial commitment has life assurance in place. Just think for one moment if we did we would be a wealthier country than we are today.
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