New research from Tesco Insurance lays bare the devastating financial reality many UK households would face if tragedy struck. If a partner or co-owner were to die unexpectedly, nearly one in three adults (30%) say they would be forced to sell their family home.
More than a third (35%) of people say they would need to break into their savings to cope, while almost one in five (18%) admit they’d be forced to take on extra work just to keep afloat.
For the many paying over £1,000 a month on their mortgage, the loss of a partner doesn’t just mean heartbreak, it could mean losing the roof over their heads. Yet despite the scale of the risk, almost two in three (60%) of those with a mortgage have no life insurance policy that includes mortgage protection, and four in five (80%) have no savings earmarked for emergencies or financial security.
Mortgage payments remain the top financial concern in the event of an unexpected death, with more than a quarter (27%) naming it as their biggest worry. When asked how they’d cope financially, people listed difficult choices, including relying on family or friends (11%), taking out loans (10%), renting out a room or taking in a lodger (8%).
To help customers protect what matters most, Tesco Insurance has launched simple, affordable and trusted life insurance in conjunction with Aviva. The new offering gives Tesco shoppers, and millions of Tesco Clubcard members*, access to life cover while also benefiting from Tesco’s popular customer rewards**.
Ban Mahsoub, Partnerships Director at Tesco Insurance, comments: “Losing a loved one is devastating, but for many families, that heartbreak could be followed by the unimaginable loss of their home. At a time when people should be focused on grieving and supporting each other, financial pressures can turn tragedy into a long-term crisis.
“That’s why we’re proud to announce the launch of Tesco Life Insurance, to help families plan ahead and protect the people who matter most.
“Planning for a time when you’re no longer here, and having honest conversations about practical solutions like life insurance, can be difficult. But having a plan in place brings real peace of mind and gives your loved ones the reassurance that at such a difficult time in their lives, they’re more likely to be financially protected.”
To help you be prepared, Ban has shared her tips on protecting your home and your family finances should the worst happen:
- Start the Conversation Early
Death and money are two topics many people avoid, but open, honest conversations are essential. Talk with your partner, family members, or dependents about your financial situation, any existing policies, and your wishes for the future. These discussions don’t need to be super formal or overwhelming, just a shared understanding of what’s in place and what might be needed can go a long way in building peace of mind.
For those who are unfamiliar with life insurance, it may be worth doing some reading beforehand. We have a few guides on our website, including a glossary of life insurance terms, which is handy for breaking down commonly used terminology.
- Understand Your Monthly Costs
Many people underestimate the cost and what it actually takes to run a household. Take time to list out your essential monthly expenses, things like mortgages or rent, energy bills, food, transport, childcare, and even debt. This helps you understand how much support your family would need if your income was no longer there and ensures that any life insurance policy is based on real-world needs, not just rough estimates.
- Review Your Life Insurance Regularly
Life is always changing, and your cover should reflect this. Review your policy at least once a year or whenever something major happens in your life, such as a new child, a change in income, a house purchase, or a change in your health. Ensuring your life insurance is aligned with your current lifestyle and financial responsibilities means your loved ones won’t be caught short if the unexpected happens. Just like your life, your financial planning should evolve too. Update your beneficiaries, review your cover limits, and make sure your documentation is easy for your loved ones to access in the event it’s ever needed.
- Seek Professional Advice if You’re Unsure
If you’re not confident about how much cover you need, or if your circumstances are more complex – such as being self-employed, or have dependents from previous relationships, consider speaking to a financial adviser. They can help you tailor a policy to your situation, make the most of your budget, and avoid common pitfalls such as being underinsured or duplicating cover.
