Mortgage Industry News

← Back

Brits failing to invest windfalls in life insurance

Date: Thu, 13 Apr 2006

Extra cash obtained via work bonuses or redundancy pay is often used to finance luxury purchases rather than invested in life insurance.

The majority of Brits are using the one-off funds to help pay for holidays, new cars and other big-ticket luxuries instead of using them to help secure the long-term financial future of their loved ones.

Investment provider Birmingham Midshires estimates that just eight per cent of money from financial windfalls goes towards paying off mortgages or other debts while 52 per cent is poured into self-indulgent treats.

Four out of ten people received an average £5,944 windfall over the past 12 months, with a third being spent on luxury items, 15 per cent on holidays and six per cent on a new car.

Jason Robinson, director of savings operations for Birmingham Midshires, said: "It's easy to be tempted to splurge when we get an unexpected windfall, but it is important to find a healthy balance between spending on luxuries and treats and the less exciting ways to use the money such as paying off debts and saving."

"Using bonuses, inheritance and redundancy money to save or invest for the future will eventually provide Brits with an even greater windfall when they need it most."


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.