December 14, 2010 11:47 ET

Seven Million People With a Mortgage have No Life Insurance

LONDON, UNITED KINGDOM--(Marketwire - Dec. 14, 2010) - According to research conducted by a UK life insurance provider, over 7.1 million people with a mortgage have no life insurance to cover their mortgages.

The research found that these 7.1 million have an accumulative outstanding mortgage balance of £320 billion, which is an increase of £1 billion since 2006. This 47% increase is believed to be due to the recession, with the average outstanding mortgage debt averaging over £44,000 per uninsured household.

The research pointed out that people are likely to put less importance on life insurance because of the uncertainty that the recession brings and are placing more importance on current financial necessities instead of the unforeseeable.

However, Lucy Hunter, a manager at a UK life insurance provider warns, "life insurance provides financial cover should the unthinkable happen and enables people to be secure in the knowledge that their dependants could receive a cash lump sum if they were to die."

Hunter added, "This is particularly important for homeowners, who should take care not to overlook life insurance as it can help to ensure peace of mind that the property is paid for upon death, allowing loved ones to continue living in the family home. It could also alleviate any financial burden, therefore, providing financial security."

According to the research, 44% of 25-35 year olds and 32% of 35-44 year olds who are homeowners have no life insurance to protect their mortgage payments. It is believed that these younger couples are not purchasing life insurance to cover their mortgages because their double incomes enable them to purchase a house that they wouldn't normally be able to purchase with a single income.

Ensure your property is protected with an Endsleigh life insurance policy. Get a free online quote from Endsleigh today for added peace of mind.

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