Home-movers urged to review life insurance - Life insurance - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Home-movers urged to review life insurance

Home-movers urged to review life insurance

Category: Life insurance

Updated: 04/09/2014
First Published: 04/09/2014

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 It is now over 6 months old so the content may be out of date.

Almost two-thirds of homeowners who have recently taken on a bigger mortgage could be putting their families' futures at risk after failing to review their life insurance at the same time.

According to new research from Sainsbury's Bank Life Insurance, 64% of people who have moved up the property ladder in the past five years, and have a bigger mortgage as a result, did not revisit their life insurance.

With mortgage payments generally the biggest monthly outgoing from a household, having adequate life insurance cover provides families with peace of mind that they could afford to continue living in their home should the worst happen.

Thinking it wasn't necessary (39%) and believing they could not afford it (37%) were among the main reasons mortgage holders gave for not reviewing their life insurance.

Worryingly, the research also revealed that 44% of homeowners with a mortgage do not have any life insurance at all. 10% of these people had life insurance in the past but no longer do, while a further 3% said they didn't know if they had cover.

Of those who do not have life insurance, more than half (53%) live with a partner and around one in five people (20%) live with children.

As a result, homeowners are being encouraged to ensure they understand what cover they have and decide if it suits their needs.

Those who do not have cover should consider if this is something they do need.

"Moving home can be an exciting but stressful experience and with such a long checklist of things to do, it appears that life insurance is often forgotten about," said Scott Gorman, head of Sainsbury's Bank life insurance.

"We would encourage anyone who is moving home or may have just moved to take some time to check their policy and the level of cover they have and make sure it's suitable for their change in circumstances."

What next?

Compare the best life insurance cover using our FREE life quote from our partner ActiveQuote

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.

Related Articles

Stay-at-home parents do £30K of unpaid work

New research has found that stay-at-home parents do an average of £29,812 of unpaid work per year, and yet almost two-thirds of them don’t have any life insurance, creating a potentially dangerous situation if something were to happen to them.

51% of women lack a financial safety net

A new study has found that for 28% of women, the inability to support themselves or their families financially is their greatest financial fear. And yet, 51% of women have no form of protection against financial curveballs.

Lack of life insurance raises alarm bells

Many of us realise that we should have life insurance, yet far too few actually take the plunge and invest in a policy. This could be a big mistake, as failing to have sufficient protection could put your family’s finances in jeopardy.