Britons are leaving mortgages worth £245bn unprotected, according to new research.
Four in ten mortgage holders in Britain (41%) do not have their contributions covered by life insurance, the report from Sainsbury's Life Insurance found.
It suggested that there are nearly seven million people with a collective outstanding mortgage balance of £245 billion who have no life insurance to cover their mortgage and provide support to their dependents in event of their death.
On average, those who pay towards a mortgage and aren't covered by life protection are currently personally responsible for an outstanding balance of over £36,000.
Many of those in age groups who are likely to have dependants are leaving themselves unprotected.
The research showed that a third (33%) of 35- to 44-year-olds and a similar number (30%) of 45- to 54-year-olds don't have life insurance to protect their mortgage payments.
Age Percentage of mortgage holders unprotected
Helen Williams, head of Sainsbury's Life Insurance, warned that being unprotected could have serious implications.
"Mortgage repayments are one of the biggest financial commitments in many peoples' lives but, as our research shows, unfortunately it is not something that enough mortgage holders have taken steps to protect," she said.
"We would urge anyone who doesn't have life insurance to consider taking out a policy, and those who do and have moved to a bigger house to make sure it is updated to reflect their mortgage commitment," she added.
Via The Exchange
Joint life second death option added to relieve tax burden on couples gifting assets
Rehabilitation plays key role
Targeting protection disruption
Plus extra serious illness cover for children
The government will reintroduce the pension schemes bill as part of an “ambitious programme of domestic reform”, the Queen’s Speech confirmed today.
Misuse of audio feed
Should advisers be educating clients to take more risk to reach their objectives or should they encourage a more cautious approach? Claire Tyrrell spoke to couple of advisers and a compliance expert about how they broach the topic of risk with their clients......