Many mortgages 'not protected by life insurance'
02/11/2011
Topic: Insurance & protection
A substantial number of mortgages belonging to retirees are not protected by life insurance, putting families at risk.
New figures published by Sainsbury's Finance has found that 40 per cent of mortgage holders do not have life cover to protect their contributions in the event of their death.
The majority of those who do have a mortgage are responsible for an outstanding balance of more than £36,000, it found.
The survey found that one third of 35 to 44 year old people do not have a life insurance product that covers this eventuality, while 30 per cent of 45 to 54 year olds are not covered by a policy
Helen Williams, head of Sainbury's Life Insurance, said that many people do not see this area as a priority.
She said: "Mortgage repayments are one of the biggest financial commitments in many people's lives but, as our research shows, unfortunately it is not something that enough mortgage holders have taken steps to protect."
By putting an insurance policy in place people with properties they are still paying for will be able to enjoy peace of mind in case the worst happens, she said.
Ms Williams said that by taking action now to put a policy in place people can ensure that their relatives can continue to live in the family property without worrying about the financial implications that they will have to face.
For those with an existing life insurance policy, she said that it is equally important that this is updated whenever the owner moves properties as this will continue to ensure that the cover is valid and remains in place.
Recent research by Standard Life has warned that the death of a relative or loved one is the greatest fear affecting those in retirement, with the difficulties this presents for property owners one of the key factors in this finding.
Posted by Liam Tomlinson
New figures published by Sainsbury's Finance has found that 40 per cent of mortgage holders do not have life cover to protect their contributions in the event of their death.
The majority of those who do have a mortgage are responsible for an outstanding balance of more than £36,000, it found.
The survey found that one third of 35 to 44 year old people do not have a life insurance product that covers this eventuality, while 30 per cent of 45 to 54 year olds are not covered by a policy
Helen Williams, head of Sainbury's Life Insurance, said that many people do not see this area as a priority.
She said: "Mortgage repayments are one of the biggest financial commitments in many people's lives but, as our research shows, unfortunately it is not something that enough mortgage holders have taken steps to protect."
By putting an insurance policy in place people with properties they are still paying for will be able to enjoy peace of mind in case the worst happens, she said.
Ms Williams said that by taking action now to put a policy in place people can ensure that their relatives can continue to live in the family property without worrying about the financial implications that they will have to face.
For those with an existing life insurance policy, she said that it is equally important that this is updated whenever the owner moves properties as this will continue to ensure that the cover is valid and remains in place.
Recent research by Standard Life has warned that the death of a relative or loved one is the greatest fear affecting those in retirement, with the difficulties this presents for property owners one of the key factors in this finding.
Posted by Liam Tomlinson
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