Although life insurance is not compulsory for mortgage holders, it’s highly recommended to make sure the mortgage is paid off should the policy holder pass away.
According to Compare The Market, just 30% of UK adults have life insurance cover which equates to 8.1 million households. Significantly less that the number of mortgaged properties in the UK (11.1 million).
Compare the Market’s poll of 3,000 UK adults found that a third had no life insurance policy. But of those who did, 79% had never switched provider, meaning they could be paying over the odds for a policy.
Its research also found that people with a life insurance policy pay an average premium of £22.45 a month.
Dan Hutson, head of life insurance at Compare The Market, said: “Life insurance should be considered essential for those with a mortgage. It is concerning to see that so many people in the UK with a mortgage do not have protection, meaning family members, dependents or beneficiaries could sadly be saddled with debt should the worst happen”.
If you’ve recently taken out a mortgage and thought life insurance wasn’t necessary it may be worth rethinking.