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Brits urged to update life insurance

Brits urged to update life insurance

Category: Life insurance

Updated: 26/11/2012
First Published: 14/06/2011

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Millions of Britons risk leaving dependents in financial difficulty after failing to update their level of life cover.

More than five million people are estimated to be playing a dangerous game with their loved ones' futures, according to Sainsbury's Finance.

This is because almost two thirds (60%) of those with life insurance admit they have not updated their level of cover following a significant change in their personal circumstances.

Life changing events such as getting married, having children, or buying a home with a bigger mortgage can all have an impact on financial commitments.

However, worryingly, millions of people fail to take this into account and do not review their level of life insurance cover accordingly.

The most common change in personal circumstances people are likely to have experienced since purchasing life insurance is changing jobs.

Having children and getting married were the second and third most common change respectively.

David Cook, of Sainsbury's Life Insurance has urged people to consider any significant changes in their personal circumstances and ensure that they have adequate cover should the unthinkable happen.

"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," he added.

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

"Life insurance provides financial cover should the unthinkable happen and enables people to be secure in the knowledge that their dependants would receive sufficient funds if they were to die, which would help them to protect their standard of living."

The new findings come after research conducted by the life insurance provider last year revealed nearly half of mortgage holders in Britain (43%) do not have their mortgage contributions covered by life insurance.

Of those who pay a mortgage that is not covered by life protection, the research found that on average they are personally responsible for an outstanding balance of over £44,000.

Protecting yourself and your family financially against any unforeseen circumstances should always be at the top of your list of priorities.

Moneyfacts.co.uk have partnered with Torquil Clark Life Insurance to help you find the best life insurance deal.

Speak to an adviser about your life insurance needs

Under no circumstances should you cancel an existing life insurance policy until a new one has been arranged. Torquil Clark Life Insurance is a trading name of LifePolicies Direct Ltd which is authorised and regulated by the Financial Services Authority.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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