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More than a quarter of young homeowners have no life cover – Beagle Street
Some 28% of people aged 18 to 40 with a mortgage do not have life cover, an insurance provider has found.
Research from insurer Beagle Street surveyed 2,000 adults in the UK and said this lack of cover equated to 1.7 million uninsured homeowners.
Some 23% of respondents said they were not insured because they did not see it as a priority, while 22% said they had not thought about it. A further 22% said they did not have enough money to pay for life insurance because of the cost of living crisis.
When asked how their mortgage would be paid for if they died, 19% said of those polled said they did not know.
This follows previous research from the insurer which suggested £433bn of mortgage debt in the UK was not covered by life insurance.
For those who did look to buy life cover, 44% spoke to a financial adviser. Just 16% went directly to a provider.
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Ryan Griffin, director of protection at Beagle Street, said, “It’s really important for people to put plans in place and protect themselves and their families if the worst were to happen. We understand life insurance might not be something people want to think about, but it really can make a huge difference to those who need it.
“We know that almost half of those with a mortgage and life insurance took out a policy after speaking to a financial adviser. So, advisers are vital in making sure people have life insurance that is right for them.”
A poll conducted by Mortgage Solutions last month showed that mortgage brokers were reporting an increase in protection business as people looked to cover themselves from external financial pressures.