75% don’t have enough life cover to repay their debts

Posted on September 26th, 2011 | Categories - News

A new survey by the comparison website Go Compare has found that only 25% of adults in the UK have sufficient life cover and savings to repay their mortgage and other debts should they die.

The figures are worrying, as is the finding that just 17% of people are concerned about the level of life cover they have and given the choice between spending £10 per month on life cover or playing the National Lottery 65% would prefer to play the lottery.

The main reasons given for the lack of life cover were cost and general apathy to the need, furthermore 10% of people thought they had left it too late to arrange adequate cover.

No one likes to think about their own death; however a lack of planning can cause significant financial hardship for dependents, especially if a mortgage on the house in which they live is left outstanding.

The cost of life cover has come down significantly in recent years and can now be bought for as little as £10 per month, although experts recommend that an individual considers how much cover they need and get quotes for that amount.

Life cover can be bought in many different forms, including mortgage protection, protection to provide an income to dependent children or spouse, and to cover specific costs such as university or school fees.

It is also available for all ages, and many insurers are now far more flexible in who they will offer cover for, even considering people who have existing medical conditions.

Experts also recommend that life cover is reviewed on a regular basis, not because the cost often falls, but also to check that the right amount of cover is in place. It should also be reviewed on major changes such as a new job, a house move or a new child.