This is quite an alarming statistic for someone that works in the industry. Whilst it is not necessary to take out life insurance to cover your mortgage, your lender would strongly recommend it to prevent financial loss for loved ones should the worst happen.
No one likes to talk about death, but unfortunately it is one of the only certainties in life. I talk to customers on a daily basis about the importance of life assurance and the most common push-back I get is "I never get ill", closely followed by "I don't want to spend the money". I look at my own experiences of close family not having any cover; my father was diagnosed with prostrate cancer in his 60's, but had no form of critical illness cover in place to protect him, the family home or his business. Thankfully, he made a full recovery, but the cover would have paid a tax-free lump sum to ease the financial pressure whilst he was being treated.
People insurance their cars, their phones and their pets without even thinking about it. However, when it comes to their long-term health and financial affairs, the costs are somehow out-weighed by the risk of these events not happening.
I'd always recommend speaking to an expert as oppose to buying online, purely because the product and application has been selected and tailored to you, your circumstances and health conditions. It may cost a few pounds more a month, but you have the security of knowing the application has been vetted by the insurance provider and there is re-course if there are any issues.
Here are some more alarming statistics;
Half (50%) of people in the UK with a mortgage have no life cover in place
Only a fifth (20%) have critical illness insurance
43% would resort to dipping into savings if they or their partner were unable to work, yet 15% don’t know how much they have
The report by Scottish Widows is alarming and I'd urge anyone that isn't covered to consult an expert as soon as possible. Don't leave your life and the lives of your loved in the hands of chance.
