New research from Gocompare suggests that 1.5 million households may not have enough life cover to pay off their mortgage if either partner were to die.
The survey of 3000 people highlighted the possibility that millions of people may well be leaving something sizeable for their loved ones if they were to die suddenly - a mortgage debt. Only one in four adults say they have sufficient financial protection and savings to clear the mortgage and other debts and to provide an income for their family and dependent relatives, in the event of their death. The survey said that cost and apathy are the main reasons people give for having insufficient cover.
Jeremy Cryer from Gocompare says, "No one likes to think about their own mortality, which is why life insurance is a difficult product for many of us to consider. But it is important to plan ahead and make sure loved ones are financially protected when we are no longer around to look after them. It can be difficult working out how much cover you need, but as a basic rule of thumb, you should certainly be thinking about buying enough cover to clear any outstanding debts, including your mortgage, and providing a capital sum for your dependents. In the current competitive market, you can buy life insurance for as little as £10 a month."
Life insurance news: 2 October 2011