Mortgage holders with no life insurance!
30th May, 2014
Around half of all mortgage holders in the UK are without any form of life insurance, research has revealed. Home-owners who choose not to take out a policy risk losing their biggest asset if the unforeseen were to happen.
The study carried out by Scottish Widows found that more than 14 million adults over the age of 18 had a mortgage, but only 50 per cent of those had life cover. This compared to 54 per cent last year. A fifth of the people surveyed claimed they had no idea how they would cover household costs if they or their partner were unable to work due to critical illness, serious Injury, or death. Just under half stated that any savings they had would last them a couple of months at most.
Mortgage holders were generally found to overestimate the amount of financial support they would receive from the state and their employer, with 64 per cent under the impression that their workplace would pay them a full salary, later decreasing to a partial wage, if they were off work long-term. Although statutory sick pay is paid out for a maximum of 28 weeks for many people, the amount is only £87.55 per week. This can be supplemented by occupational sick pay, however, for those who are eligible.
To further compound the problem, household spending among mortgage holders has increased dramatically since 2013. With more people now choosing to compare life insurance quotes to get the best deal out there, mortgage holders are encouraged to shop around and take out some form of life cover to protect them in case the worst should happen