Mortgage contributions 'not covered by life insurance'

Posted: 02 Nov 2011 12:29:16 GMT

Nearly £245 billion worth of mortgages do not have life insurance protection.

A high number of home loan holders in the UK do not have their mortgage contributions covered by life insurance, new research has shown.

Carried out by Sainsbury's Life Insurance, the study revealed 41 per cent of those questioned have failed to ensure this protection is in place.

According to the organisation, this means almost seven million individuals with a collective outstanding mortgage balance of £245 billion may not be able to offer financial assistance to dependents should they die.

Helen Williams, head of the group - part of Sainsbury's, which was founded in London in 1869 - described mortgage repayments as one of the biggest monetary commitments many people are likely to face in their lives, yet a high number have failed to take the necessary steps to protect it.

The industry figure stated: "Perhaps some may feel it is less of a priority than other items on their household budget however, being unprotected could have serious implications."
 

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