Life insurance warning for mortgage holders

Mortgage borrowers have been urged to make sure they take out life insurance to provide financial security for their loved ones. Almost half of mortgage holders in Britain do not have their mortgage contributions covered by life insurance, according to new research from Sainsbury's Life Insurance.

The findings suggest that there are more than 7.1 million people with a collective outstanding mortgage balance of £318 billion who have no life insurance to cover this. With the recession leaving many people with less money in their pockets, it is thought some mortgage holders have decided that life insurance can be put on the backburner.

However, focusing on the present rather than the 'unthinkable' could have serious consequences for those who aren't protected. If these people were to die, their loved ones may not be able to afford to make the mortgage repayments and ultimately, in some cases, may have to leave their home.

"Life insurance provides financial cover should the unthinkable happen, enabling people to be secure in the knowledge that their dependants could receive a cash lump sum if they were to die," explains Lucy Hunter, Sainsbury's Life Insurance Manager.

"This is particularly important for homeowners, who should take care not to overlook life insurance as it can help to ensure peace of mind that the property is paid for upon death, allowing loved ones to continue living in the family home. It could also alleviate any financial burden, therefore providing financial security."

Life insurance is not as expensive as many people think, with plenty of providers such as Barclays Life, Tesco Life, Post Office Life and Virgin Money Life all offering cover which won't break the bank. Alternatively, Moneyfacts.co.uk has teamed up with Life-Quote enabling you to quickly and easily compare life insurance deals from a number of different insurers.

Not only will you receive a free, no obligation life insurance quote tailored specifically to your individual needs, expert help and advice to make sure you find the best life insurance deal is available too.

http://moneyfacts.co.uk/news/life-insurance/life-insurance-warning-for-mortgage-holders/

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As always, life insurance has more importance than people realise, it can basically be mortgage protection for your family if the worst happens to you.