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60% fail to update life cover when circumstances change

Sainsbury’s Life Insurance is warning that over five million Britons could be putting their dependants at risk of serious financial difficulty after research revealed that 60% of people with life insurance admit failing to update their level of cover following a significant change in their personal circumstances.

Research carried out by the provider shows 82% of respondents have not updated their life cover after changing jobs, 65% have not done so after having children and 59% have failed to do so after buying a home.

It also reveals that 46% have not updated their cover after getting married and 42% have not done so after upgrading to a house that required a bigger mortgage.

David Cook of Sainsbury’s Life Insurance says: “Many people invest in life insurance when they buy their first home as they want peace of mind that they’re covered should anything happen and they’re unable to pay the mortgage.

“However, clearly people are overlooking the need to update their level of cover once their personal circumstances have changed.”

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BOB HUNT, CHIEF EXECUTIVE, PARADIGM MORTGAGE SERVICES

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