Life insurance Updated:
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."
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.