There are more than four million people whose mortgages are not covered by their life insurance policy, according to new research.
Sainsbury's Bank warns that the 4.2 million who have failed to ensure this cover may risk leaving their loved ones with nowhere to live if the mortgage payer were to die.
This is because in the event of death, relatives might not be able to afford to make the mortgage repayments.
It is estimated that around £217 billion worth of mortgages are not covered by life insurance and Sainsbury's warns that this protection deficit could widen as the housing market improves.
"Life insurance provides financial cover should the unthinkable happen, enabling people to be secure in the knowledge that their dependants could receive a cash lump sum if they were to die," said David Pickett, life insurance manager at Sainsbury's Bank.
"Homeowners in particular should take care not to overlook life insurance as it can help to ensure the property is paid for upon death, alleviating any financial burden and may even provide financial security for loved ones," he said. To read more about Life Insurance, click here.
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