Mortgage debt higher than the average life insurance pay out
31st May, 2017
Mortgage debts higher than the average life insurance pay out
Research from leading provider Aegon has revealed that the average life insurance claim pay out was £75,000 in 2016, substantially lower than the average mortgage debt of £119,937 in January 2017. This suggests that people could be underinsured by an average of £44,937, when compared against their mortgage debt.
This is a surprising statistic, and one that suggests that affordability pressures in the housing market could be forcing people to ignore the implications of a lack of cover in exchange for their dream home. But this shortfall also highlights that loved ones could be left with a considerable debt that may not be covered through a single income.
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