Life insurance Updated:
Many young people dream of getting on the housing ladder, and an increasing number are buying their first property with their partner in order to achieve their goals. However, a worrying proportion of these are doing so without investing in life insurance, something that could put their homes – and finances – at risk.
According to figures from Sainsbury's Life Insurance, 38% of cohabitees who own their home don't have life insurance, despite the fact that 46% of those admitted that they'd have difficulty meeting their financial commitments should they or their partner be unable to work.
It could prove to be a growing problem, too, as figures from the Office for National Statistics show that 43% of 25-34 year-olds are homeowners, with cohabiting couples being the fastest growing family-type in the UK.
"Neglecting to take out life insurance could be a costly oversight, because when mortgages are held in joint names, both parties are equally responsible for paying it," said Scott Gorman, Life Insurance manager at Sainsbury's Bank. "Our research shows that many believe they would find it difficult to meet their financial commitments without their cohabitee's income, so we would urge homeowners to consider life insurance."
It's always best to take this kind of precaution, because even if you don't have children to think about – often the key driver behind investing in life insurance – failing to have the right kind of cover in place could be an expensive oversight. If you couldn't afford to cover the mortgage payments you could risk losing the house, so is it worth it?
You don't have to opt for all-out life insurance, either, as Gorman adds: "Some homeowners, especially young buyers, may think that life insurance is an additional expense too far, but even taking out some cover to assist with mortgage payments would be better than nothing." This kind of policy would specifically cover your mortgage, but you may like to look into things like income protection insurance or critical illness cover for additional support should you or your partner be unable to work.
It needn't cost a fortune, so make sure to consider your options wisely and you can have the peace of mind you need by knowing that your finances are fully protected.
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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 Any products featured may be withdrawn by their provider or changed at any time.
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