Half of UK adults without life insurance are risking their roof

Half of UK adults are leaving themselves and their families financially exposed by not having any life insurance, new research claims.

Of the 1,682 mortgage holders surveyed by YouGov, exactly 50 per cent had no life cover in place, while only a fifth (20 per cent) had taken out critical illness insurance.

A third (33 per cent) admit that they’d be unable to live on just one income if they or their partner became too ill to work for six months or longer.

Some 43 per cent would be prepared to dip into savings in this situation, but an identical proportion admitted that the money would run dry after a couple of months.

A sixth (15 per cent) weren't even sure how much they had stashed away if they needed it, suggesting that these people would be relying on cash that probably doesn't exist.

Those struggling to pay their mortgage in the event of one breadwinner falling ill can receive Support for Mortgage Interest, which will help pay the interest on a mortgage or loan up to £200,000.

However, recent changes mean that applicants now have to wait 39 weeks – almost nine months – before receiving the benefit; that’s three times longer than before and could mean that relief arrives too late for many.

People that have lived in their home for long enough may also have the option of taking what is known as a ‘mortgage payment holiday’. This means that payments can be temporarily paused or reduced, relieving some financial pressure for up to 12 months in some cases. In case you needed reminding, your home can be repossessed by the mortgage lender if you fail to keep up repayments.

Johnny Timpson, protection specialist at Scottish Widows, which commissioned the research, said: “Many people believe that they’ll be able to rely on the state if the unforeseen happens, but recent cuts to welfare benefits are exacerbating their vulnerability.”

Chris Gowland, mortgage director at Halifax, added that having a financial plan in place is an effective way to help protect your home should the unfortunate happen and would provide greater peace of mind when it comes to what is probably your greatest financial investment.