A recent survey has found that mortgages worth at least £245 Billion are not protected by Life Insurance. I read the survey report by Sainsbury's Finance today and I thought this must cost more for mortgage holders who would potentially be in for more than what they paid for to secure the mortgage, especially over soft grants.
Four in ten mortgage holders do not have life cover to protect their mortgage, the survey said. 4 mortgage-holders out of 10 in Britain are not protected by life insurance. This practically means there are nearly 7 Million holders with a collective outstanding mortgage balance of £245 billion with no Life Insurance protecting their mortgage or avail support for their dependents in event of 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,” the survey report said.
There is even more worry for those who are yet to have their holdings covered: The survey said many in age groups likely to have dependents are also unprotected.
In fact, the survey found that one out of 3 (about 33%), from the age-range of 35 to 44 year have mortgages that are unprotected by Life Insurance. This means they have no protection for their payments. Further, about a third (30%) of 45 to 54 year old does not have insurance cover.
“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. There could be many reasons for this, perhaps some may feel it is less of a priority than other items on their household budget however, being unprotected could have serious implications,” said head of Sainsbury's Life Insurance, Helen Williams in the press release earlier on November 7.
Life Insurance offers at least some kind of “peace” because if in case the unthinkable happens, the surviving dependents can always continue living in the family home without having to carry subsequent burdens of financial implications later on.
It is for this reason that the head of Sainsbury's Life Insurance is urging all and anyone who have yet to get Life Insurance, to seriously take out a policy.
Sainsbury's Life insurance premiums start from as little as £5 a month (which is 16p per day) and are among the most competitive available, regularly appearing in best-buy tables. The provider was recently awarded Most Competitive Term Assurance Direct Provider at this year's Moneyfacts Awards.
New Sainsbury's Life Insurance customers will benefit from double Nectar points on all Sainsbury's shopping in-store, online and in petrol filling stations for two years. When using their Nectar card in-store at the till customers could benefit from the equivalent of up to 2% off their Sainsbury's purchases (3). For example, those spending £49 a week in-store at Sainsbury's could, over a year, earn up to a week's free shopping(4).
For details on what cover you require, you can contact Sainsbury's Life Insurance for a quote or for further information on 0800 027 7166 (calls may be monitored and recorded. Sainsbury's Life Insurance does not offer financial advice.
For further information and general Sainsbury's Finance inquiries customers can call the free phone number on 0500 40 50 60 or visit http://www.sainsburysfinance.co.uk/