Adults with a mortgage without life insurance

Adults with a mortgage without life insurance. Almost three in ten (28%) of young adults, between the age of 18-40 with a mortgage do not have life cover.  Critically should they die they have no monetary protection for their families.

This equals nearly 1.7 million (1,664,258) UK homeowners aged 18-40 with a mortgage.  Chiefly they do not have the safety net of life insurance to support their family if they passed away. The research by Beagle Street, surveyed 2,000 UK adults between the ages of 18-40.  Moreover they were also asked about their attitudes and behaviours towards life insurance.

Further research suggests that in 2023, there were more than £433billion of mortgage debts unsecured by life insurance.  This represents the combined value of home loan debt that would be owed if an expected death were to happen.  

Why don’t they have Life Cover

Of those who have a mortgage but no life insurance.  Firstly, a quarter (23%) say it’s because they don’t currently see it as a priority expense.  Secondly, a fifth (22%) have just never thought about it.  Notably, the same proportion (22%) say the cost-of-living crisis means they don’t have enough money to pay for it.   Likewise, slightly less (19%) report that they simply can’t afford it.

Nearly Half (44%) use a Financial Adviser

When looking to buy life cover, the most common resource those with a mortgage used, was speaking to a financial adviser (44%).  Indeed, only 16% went directly to a provider. 

Furthermore, maintaining the previous standards of living is often extremely difficult.  This often resulted in a family downsizing or moving to rented accommodation.  Most importantly many households have little to no savings.  With 50% of people aged between 18 and 40 saying they have less than £2,500 saved in a recent survey.  I’s so important to understand the impact of losing a contributing partner might be. Given the responsibility of bringing up children while also potentially paying for a mortgage.  It’s crucial to plan ahead to ensure families are protected financially should the worst happen.

Adults with a mortgage without life insurance.  To understand how we can help you with your life cover and your financial goals, call us today. For a free initial consultation, call us on 01603 957599.


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