A large amount of people often get life insurance to cover the cost of things like a mortgage should they pass away. Yet, there is research that shows that people are under-protected by around £45,000.
How bad is it?
A mortgage can be one of the most common debts within a household. If this is not properly protected against, it can cause enormous amounts of financial burden should the main bread-winner of the house die.
The Money Charity’s figures showed that the average outstanding mortgage for the 11.1 million households with mortgages in the UK was £120,230 in March 2017 (The Money Charity).
Despite the average value of outstanding mortgages in the UK being so high, according to ABI (Association of British Insurers), in 2016 “98% of claims paid out at an average value of £75,000” (Association of British Insurers).
This means that a large amount of people in the UK are experiencing a huge shortfall of around £44,973.
Considering all the costs that surround such a tragic event such as the death of a spouse, coupled with the rising cost of living, this shortfall can leave families that now depend one or have no income in a state of financial turmoil.
These figures show the sheer importance of making sure that you are fully protected against these types of situations. If you took out a life insurance policy a few years ago and in those few years you have moved, married, had children, or divorced, the policy you originally took out will most likely no longer be suitable for your current situation.
If you are unsure if your policy will properly protect you from a situation like this, contact one of our qualified advisors for a review of your policy and help on what to do next. You can call us on freephone 0800 849 7744 or use the from below.