Mortgage Industry News

← Back

Brits ignoring 'essential' life insurance

Date: Tue, 14 Feb 2006

Many homeowners are failing to ensure they have adequate life insurance in place, according to new research.

Figures produced by Sainsbury's Bank suggest that up to £217 billion worth of UK mortgages are not protected by life insurance cover meaning that families are at risk of losing their home.

The recent increase in mortgage approvals means that it is likely that even more homes will not be covered by a relevant life insurance policy over the coming 12 months.

A total of 4.3 million people do not currently have their mortgage covered by a life insurance policy, which means if they should die, their loved ones could be forced to move out of the family property.

David Pickett, life insurance manager, Sainsbury’s Bank said: "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.

He added: "Homeowners in particular should take care not to overlook life insurance as it can help to ensure the property is paid for upon death alleviating any financial burden and may even provide financial security for loved ones."


© 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.