New research by Sainsbury's Life suggests that 5 million could be leaving their dependants in serious financial difficulty because well over half of those with life insurance admit failing to update their level of cover following a significant change in their personal circumstances.
Life changing events such as getting married, having children, or buying a home with a bigger mortgage can all have an impact on financial commitments, yet worryingly, millions of Brits forget to take this into account and review their life insurance level of cover accordingly. Leaving loved ones behind to cover the cost of a mortgage, raise children, or take care of any other financial responsibilities you may have, without leaving provision, is a huge financial burden that could run in to hundreds of thousands of pounds.
The research says that the most common change in personal circumstances people are likely to have experienced since purchasing life insurance is changing jobs, followed by having children and getting married.
You should consider any significant changes in your personal circumstances and ensure that you have adequate cover should the unthinkable happen.
David Cook of Sainsbury’s Life says, “Many people invest in life insurance when they buy their first home as they want peace of mind that they are covered should anything happen and they are unable to pay the mortgage. But they overlook the need to update their level of cover once their personal circumstances have changed.” Life insurance provides financial cover should the unthinkable happen and enables people to be secure in the knowledge that their dependants would receive sufficient funds if they were to die, which would help them to protect their standard of living."