64% of people who took on a bigger mortgage did not review their life insurance
Sixty-four per cent of people who have moved up the property ladder in the past five years, and have a bigger mortgage as a result, did not review their life insurance, according to research from Sainsbury’s Bank Life Insurance. Mortgage payments are generally the biggest monthly outgoing, so having adequate life insurance cover could give peace of mind that your family could afford to continue living in their home, even if you are not there.
Reasons homeowners with mortgages gave for not reviewing their life insurance include thinking it wasn’t necessary (39%) and that they could not afford it (37%).
The findings also reveal that 44% of homeowners who have a mortgage do not have any life insurance at all, and 10% of these people had life insurance but no longer do. A further 3% said they didn’t know if they had cover.
As official figures reveal that house prices rose by 9.9% in the year to April 2014 and the average property now costs £260,000, Sainsbury’s Bank Life Insurance is encouraging homeowners to ensure they understand what cover they have and decide if it suits their needs. Those who do not have cover should consider if this is something they do need. In addition, Sainsbury’s Bank Life Insurance customers have the flexibility to increase their cover with any lifestyle changes they may make.
Scott Gorman, Head of Sainsbury’s Bank Life Insurance said: “Moving home can be an exciting but stressful experience and with such a long checklist of things to do, it appears that life insurance is often forgotten about. We would encourage anyone who is moving home or may have just moved to take some time to check their policy and the level of cover they have and make sure it’s suitable for their change in circumstances.”
The research also suggests that of those who do not have life insurance, 53% live with a partner and around one in five people (20%) live with children.
For information on Sainsbury’s Bank Life Insurance, visit sainsburysbank.co.uk/life.