Customers Skimping on Life Cover when Changing Mortgage

25 Sep, 2014

Six out of ten people who have moved up the property ladder in the past five years and taken out a bigger mortgage did not increase their life insurance cover.

A survey of 2039 adults by Sainsbury’s Bank Life Insurance revealed that four in ten did not think it was necessary to review their cover while alarmingly 37% said they could not afford to pay higher premiums.

The poll also revealed that 44% of homeowners who had a mortgage did not have any life insurance whatsoever..

Meanwhile, official figures revealed that UK house prices rose by almost 10% in the year to April 2014, with the average property now costing almost £260,000.

A spokesman for Sainsbury’s Bank Life Insurance, said: “Moving home can be an exciting but stressful experience and with such a long checklist of things to do, it appears that life insurance is often forgotten about.

“We would encourage anyone who is moving home or may have just moved to take some time to check their policy and the level of cover they have and make sure it’s suitable for their change in circumstances.”