Four in ten mortgage holders do not have life insurance
Wednesday, 2 November 2011 12:03 PM
Four out of ten mortgage holders do not protect their contributions with life insurance, say Sainsbury's.
That figure amounts to nearly seven million people and a combined mortgage balance of £245 billion.
On average those paying towards a mortgage and not covered by life insurance owe an outstanding balance of £36,000 each.
Helen Williams, head of Sainsbury's Life Insurance, said: "Mortgage repayments are one of the biggest financial commitments in many peoples' lives but, as our research shows, unfortunately it is not something that enough mortgage holders have taken steps to protect.
"There could be many reasons for this, perhaps some may feel it is less of a priority than other items on their household budget however, being unprotected could have serious implications.
"We would urge anyone who doesn't have life insurance to consider taking out a policy, and those who do and have moved to a bigger house to make sure it is updated to reflect their mortgage commitment."
Around one in three 35 to 54 year-olds – the age group most likely to have dependents – do not have cover to protect their mortgage payments.
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