Research by Friends Provident shows that 24 per cent of Britons lack insurance to pay mortgage debt upon their death, leaving their family to pick up the bill.
Ian Jefferies, head of protection marketing at Friends Provident, commented on the risks people are taking by insuring cars and possessions but not themselves: “The key thing for people to remember, especially those with families or other dependents, is that life assurance can soften the financial difficulties for loved ones should the worst happen.”
Britain’s “protection gap” between cover required and actually in place is estimated to be £2 trillion.
Despite this gap, 78 per cent of people said that they believed it was the breadwinner’s responsibility to ensure cover was in place.
If cover was lacking, debt levels could affect family life through the forced selling of the family home or the taking on of extra work, such as a second job.
With term assurance offering a tax-free cash sum in the event of death, Mr Jeffries urged homeowners to take out cover to protect their families against mortgage debt.