Only fifth of borrowers opt for life insurance

The figure marks a continuing downward trend in the number of people taking out life insurance with their mortgage. In 2002, MMD recorded a third of borrowers who took out life insurance with their mortgage and in 2006, this had declined to a quarter. Despite the financial constraints facing consumers in the current economic climate, opting out of life insurance is not a safe way to save money, according to Cath Hearnden, mortgage broker at MMD. “Of course it’s hard to make ends meet in the current financial climate,” she says, “but it will be a great deal harder for one person to manage ...