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Three in ten young adults with a mortgage do not have life insurance

by | Jun 10, 2024

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  • Almost three in ten (28%) adults aged 18-40 with a mortgage do not have life cover, according to insurance provider Beagle Street
  • This is equal to nearly 1.7 million young UK homeowners who have mortgages without the safety net of life insurance
  • In Britain, more than £433billion of mortgage debt is not covered by life insurance
  • Of mortgage holders without cover, a quarter (23%) say it’s because they don’t currently see it as a priority expense, a fifth (22%) have just never thought about it and the same proportion (22%) say the cost-of-living crisis means they don’t have enough money to pay for it 
  • When asked how their mortgage would be paid for if they died, almost one in five (19%) said they didn’t know
  • When looking to buy life cover, the most common resource mortgage holders used was speaking to a financial adviser (44%). Only 16% went directly to a provider

Almost three in ten (28%) young UK adults with a mortgage do not have life cover to protect them and their families.

This is equal to nearly 1.7 million (1,664,258) UK homeowners aged 18-40 who have mortgages without the safety net of life insurance to support them if they passed away. The research by Beagle Street, which is part of the OneFamily Group, surveyed 2,000 UK adults between the ages of 18-40 and asked them about their attitudes and behaviours towards life insurance.

Further research by the insurer suggests that in 2023, there was more than £433billion of mortgage debt not covered by life insurance in Britain. This represents the combined value of home loan debt that would be owed if an expected death were to happen.

 
 

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

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

Ryan Griffin, Director of Protection at Beagle Street, said, “It’s really important for people to put plans in place and protect themselves and their families if the worst were to happen. We understand life insurance might not be something people want to think about, but it really can make a huge difference to those who need it. 

 

 “We know that almost half of those with a mortgage and life insurance took out a policy after speaking to a financial adviser. So, advisers are vital in making sure people have life insurance that is right for them.”  

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