Life insurance Updated:
Mortgage borrowers have been urged to make sure they take out life insurance to provide financial security for their loved ones. Almost half of mortgage holders in Britain do not have their mortgage contributions covered by life insurance, according to new research from Sainsbury's Life Insurance.
The findings suggest that there are more than 7.1 million people with a collective outstanding mortgage balance of £318 billion who have no life insurance to cover this.With the recession leaving many people with less money in their pockets, it is thought some mortgage holders have decided that life insurance can be put on the backburner.
However, focusing on the present rather than the 'unthinkable' could have serious consequences for those who aren't protected. If these people were to die, their loved ones may not be able to afford to make the mortgage repayments and ultimately, in some cases, may have to leave their home.
"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," explains Lucy Hunter, Sainsbury's Life Insurance Manager.
"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. It could also alleviate any financial burden, therefore providing financial security."
Life insurance is not as expensive as many people think, with plenty of providers such as Barclays Life, Tesco Life, NatWest Life Insurance and Virgin Money Life all offering cover which won't break the bank.
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 Any products featured may be withdrawn by their provider or changed at any time.
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