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Mortgage holders short of life insurance

Date: Wed, 04 May 2005

Mortgage holders do not have adequate life insurance, according to new research.

The study, commissioned by Friends Provident, concluded that nearly 25 per cent of mortgage borrowers do not have enough cover to pay off their mortgage debts should they die.

Around 30 per cent of Londoners admitted to having no policy cover, whilst this figure was just 14 per cent in Scotland.

Many people feel that life insurance is unnecessary and an added expense to budgets.

"Most people are happy to insure their house, its contents, their car, travel plans or mobile phone but often give little thought to insuring the income that pays their mortgage and funds their lifestyle," said Peter Hamilton, head of protection at Friends Provident.

"Life assurance cannot lessen the emotional impact of such events but it can soften the financial difficulties should the worst happen."

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