Thursday 1st November 2007
Life insurance can offer worthwhile protection for mortgages if you have dependants, an independent financial adviser suggests.
Dominic Mansley, managing director of Key Financial Consultants, asserts that obtaining life insurance when first arranging a mortgage can prove cheaper in the long run.
He observes that life insurance premiums typically escalate with age, so the younger the client is, the cheaper their cover.
And for those with children, the need to protect mortgage repayments in case of illness or accident is even more important.
"If its a single person looking to buy a flat by themselves, and theyve got no dependants, then we wouldnt really worry about a lack of life cover," Mr Mansley explains.
"However, if its a young family with children then we would very much make them aware of the need."
While many mortgage providers encourage their clients to obtain cover, the Association of British Insurers reveals that one in three Britons have not arranged any life insurance.
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