A study by Friends Life has found that a staggering SIX MILLION homes in the UK could be at risk because the owners are not covered by any form of protection insurance.
That figure is roughly half of all mortgaged homes in the UK, and highlights the financial tightrope many UK homeowners are walking when it comes to their home.
Friends Life surveyed 2,000 people recently and found that 60% of respondents say that, if they were to be diagnosed with cancer and unable to work, their main source of income would be their family savings or partner’s salary. This is despite nearly half of all homeowners admitting savings and investments of less than £10,000 – far less than the average household mortgage debt.
The figures released by Friends Life underline the importance for homeowners to consider protecting their home. Life insurance is a popular form of protection, as is critical illness cover and income protection. To find out more about how Bobatoo can help you with protection insurance visit our relevant pages here: Life Insurance ; Critical Illness Cover ; Income Protection Insurance
Talking about their survey results, Friends Life’s Managing Director of UK Protection- Steve Payne – said:
To find that six million homes are at risk because the owners have no financial safety net protecting them is almost unbelievable. Buying a house is the biggest investment most people will ever make and it’s hard to comprehend why people wouldn’t want to safeguard that.
It has never been more important for people to be getting advice about protection insurance. Property prices are continuing to rise so a home as an investment is getting more valuable – another reason why protecting it is so important.
Home ownership can be protected by life insurance, critical illness cover or income protection. Then should the worst happen and a property owner dies or becomes ill and is unable to work, the payout from their insurer could be used to cover the cost of their mortgage. But the Friends Life research found more than half (57%) of all UK mortgage payers do not have any form of protection insurance which means they would have to find a way to cover their monthly mortgage repayments even if they were unable to work.
Life insurance continues to be the most popular form of protection. However, only two in five (38%) mortgage payers hold a policy, and take up falls even further for critical illness cover (14%) and income protection (7%).
The research found that those living in Londoners have the lowest take-up of protection insurance, with just 33.7% of mortgage payers in the capital having protection. That is contrasted with Northern Ireland, where 62% of mortgage payers have protection insurance. Here’s the full table: