Sainsbury’s Bank has urged brokers to highlight the benefits of life insurance and said, with a surge in property sales, the trend of buying a property without considering it could prove costly.
The research indicated there are an estimated 4.2 million people with mortgages, worth an estimated £217 billion, with no life insurance cover.
David Pickett, life insurance manager at Sainsbury’s Bank, urged people to consider life insurance when taking out a mortgage. He said: “Life insurance provides financial cover should the unthinkable happen, enabling people to be secure in the knowledge their dependants could receive a cash lump sum if they were to die.
Homeowners in particular should take care not to overlook life insurance as it can help to ensure the property is paid for upon death, alleviating any financial burden and may even provide financial security for loved ones.” He suggested borrowers could save up to 25 per cent on premiums by shopping around, without affecting the type of cover.
The research also suggested that of those who did have life insurance 41 per cent had neglected to review their life assurance arrangements for potentially greater savings.
Greg Pogonowski, senior consultant at Ample Financial Services, was unsurprised but indicated the research may include sectors that do not necessarily need life cover. “As a country we’re drastically under-insured. However, if buy-to-let figures are included they may distort the research because landlords usually decide against life insurance and go for critical illness cover instead.”
