Consumers buying a new home have been advised to ensure they have adequate
life insurance to protect their purchase in the event of unforeseen circumstances.
According to a recent study carried out by Defaqto, almost a third of new
mortgages do not currently have this kind of policy associated with them.
The research indicated that the Council of
Mortgage Lenders has granted some 925,000 property loans since 2009, whereas data from the Association of British Insurers revealed that just 363,973 new mortgage-related
life insurance policies were written over the same period.
Defaqto explained that a family could be left with no way to repay a
mortgage if something were to happen to the borrower and no
life insurance was in place.
Ben Heffer, author of the report and Defaqto's insight analyst for protection, said: "In some cases, there may be prevailing individual circumstances that dispense with the need for life cover.
“However, the figures suggest that there are many people taking on debt whose loved ones would have no means of paying it off for them if the worst happened."
