According to a recent survey correlated by comparison site Gocompare, only a quarter of adults in the UK are equipped with adequate life cover and savings to clear their mortgage debt in the case of their death.
Large Mortgage Debts
Although many people are in danger of leaving their families and loved ones with large mortgage debts when they die, the figures show that around 1.5 million household in the UK are without sufficient mortgage protection life insurance.
Around 17% of Brits surveyed acknowledged that they would be worried about the financial stability of their families, loved ones and dependents in the event of their death, but 65% went on to admit that they would rather spend £10 a month on Lottery tickets than life cover.
Cost (34%) and apathy (25%) were highlighted as two of the main reasons for why there is such a shortage of Brits taking out life insurance and adequate cover. 10% believed that they had missed the opportunity to take out life insurance by leaving it too late.
Protecting Loved Ones
Spokesperson for Gocompare .com, Jeremy Cryer empathised that “no one likes to think about their own mortality, which is why life insurance is a difficult product for many of us to consider. But it is important to plan ahead and make sure loved ones are financially protected when we are no longer around to look after them.”
Mr Cryer offered some useful advice by commenting that people should “certainly be thinking about buying enough cover to clear any outstanding debts, including your mortgage, and providing a capital sum for your dependants,” even if they cannot afford much more than this.
Life Insurance vs Lottery
Mr Cryer went on to say that for just £10 a month you can buy sufficient life cover “which for the vast majority of us will be a better investment than £10 gambled on the lottery.” With a one in a billion chance of winning the lottery, surely the financial stability of a life insurance policy is the better option?