A total of 43% of mortgage holders in Britain do not have their mortgage contributions covered by life insurance, data from Sainsbury’s Life Insurance shows.
The findings suggest that there are over 7.1 million people with a collective outstanding mortgage balance of £318bn who have no life insurance to cover this.
This represents a 47% increase on the £217bn of mortgages not protected by life cover in 2006, when the Sainsbury’s Life Insurance last conducted this research.
A whopping 62% of 18 to 24 year olds and 44% of 25 to 34 year olds have no life cover.
Of those who pay a mortgage that isn’t covered by life protection, the research indicates that on average they are personally currently responsible for an outstanding balance of over £44,000.
Almost one third of 35 to 44 year olds don’t have life insurance to protect their mortgage payments, and 34% of 45 to 54 year olds aren’t covered.
Lucy Hunter, life Insurance manager at Sainsbury’s says: “Life insurance provides financial cover should the unthinkable happen, enabling people to be secure in the knowledge that their dependants could receive a cash lump sum if they were to die.
“This is particularly important for homeowners, who should take care not to overlook life insurance as it can help to ensure peace of mind that the property is paid for upon death, allowing loved ones to continue living in the family home, and it could also alleviate any financial burden, therefore providing financial security.”