Do you have life insurance to protect your loved ones from mortgage debt?
An analysis by Aegons latest protection claims statistics has suggested people are likely to be under-protected for the amount of mortgage debt they have.
The estimated average outstanding mortgage for the 11.1 million households with mortgage debt in the UK was £119,937 in January 2017, according to The Money Charity. Whereas Aegons director Stephen Crosbie said ‘’The latest figures from the Association of British Insurers (ABI) and Group Risk Development (GRiD) reported that life insurance claims paid out in 2016 had an average value of £75,000.”
This implies that people could be under-protecting themselves by around £44,937 based on their mortgage debt.
A shortfall of life protection could leave loved ones facing a debt that may no longer be manageable on a single or no income.
Things to consider when assessing your protection needs:
- What’s your total monthly household expenditure?
- How would you pay for everyday bills and essentials without the main income in the household?
- Do you have any protection policies already in place?
- What’s the difference between the amount of protection policies you have in place and all your monthly outgoings (including your mortgage or rent)?
- How much life insurance do you really need?
Life insurance is often cheaper than you expect, make sure you properly protect your family and give yourself peace of mind.