Millions of people across the UK are putting loved ones and their families at risk of financial hardship because they do not take out insurance against the worst happening, new research shows.
If you do not currently have a life insurance policy, you are not alone. Many people in this country do not own a life insurance policy in any amount, and that includes millions of mortgage holders.
While it is not compulsory to get a mortgage, life insurance, can help protect a family from financial difficulty if the borrower was to pass away, and yet a new study from Aviva shows that more than 40% of mortgage holders, including many buy-to-let landlords, have no life insurance.
Although the research reveals that 58% of mortgage holders have life insurance, just 28% have critical illness cover, while only 12% have income protection.
The study also found that mortgage holders who are married/in civil partnerships were found to be more likely to have life insurance (70%) compared to those who were never married (30%), separated/divorced (49%) or even co-habiting couples (50%).
Life insurance was also found to be more likely to be held by mortgage holders who are parents/guardians (65%) than those who are not (43%). This still signals that more than one in three - 35% - of parents/guardians are leaving their dependants vulnerable to financial shock through the death of a mortgage borrower.
Paul Dalgliesh, head of propositions at Aviva, commented: “We all want to live a long, healthy and happy life. Unfortunately, things are not always in our control and it’s not always possible to prevent the worst from happening.
"It is, however, possible to protect our loved ones and families from debt and financial hardship in case the unthinkable should happen.”