The report published by Sainsbury’s Insurance on Monday, November 1st, suggests that almost 50% of UK mortgages are not covered by life insurance. This means that over 7.1 million Brits, who collectively owe £318 billion, do not have a proper policy, which would cover their debts.
A similar research has been carried out by the company 4 years ago and it showed that £217 billion in home loans are not covered by insurance. The new figures represent a 47% rise from the number of uninsured home loans since 2006.
In the opinion of financial experts at Sainsbury’s, it is the economic downturn that negatively affected the number of people taking out life cover. They are, however, warned that the momentary economy might have dramatic consequences.
Commenting on the findings, Ms. Hunter of Sainsbury’s Life said this type of cover “is particularly important for homeowners… as it can help to ensure peace of mind that the property is paid for upon death, allowing loved ones to continue living in the family home, and it could also alleviate any financial burden, therefore providing financial security.”
Source : E1 BTL
