Thursday 18th October 2007
Individuals in the UK are putting their families at risks of facing costs totalling £2.3 trillion by not arranging life insurance, it has been warned.
Estimates from Sainsburys Bank reveal the sum, which comprises outstanding mortgages and other borrowing repayable on death.
But by taking out insurance alongside any borrowing, the balance could be covered if anything were to happen to the policyholder.
Spokesperson for the financial services provider Claire Moyles explains: "I would say anybody aged 18-plus with a family really needs to be thinking about protecting their family and protecting their mortgage."
And she observes that protection is "not top of everybodys agenda" in light of the £2.3 trillion "protection gap".
"Part of the reason the gap exists is because people are taking out a mortgage without any life insurance," she concludes.
Recent figures from the Association of British Insurers note that a third of Britons have no life insurance, while as many again have not had their requirements reassessed for five years or more.
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