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More than 40% of mortgage holders do not have life insurance

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.”

Poll: Do you have life insurance?

PLACE YOUR VOTE BELOW

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    I don't have life insurance, but then other than the credit card, which is paid off in full every month, I don't have any borrowings. It never ceases to amaze me however how many people don't have property or contents insurance, It's not expensive and can even be payed monthly, I had a commercial property fire 30 yrs ago, the insurance company, General Accident (now Aviva) were brilliant, I had the go ahead within hours and a large interim payment within 7 days, it certainly pays to insure with a proper company.

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    I don't insure contents and have probably saved more than the replacement cost of my contents over the past 40 odd years that I have had house contents. I also have a £500 excess on my car insurance as I would never make a claim for a small loss. Insurance is good to avoid huge or life changing losses but too expensive to insulate against minor losses or inconveniences. Similarly most life insurance policies for older debt free property owners are a poor investment. Statistically it's a better bet to invest the premiums to provide the kind of pay out that such insurance policies might eventually pay out.

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