Read on to find out where the 'mortgage cover gap' is greatest and whether a life insurance policy makes sense for your circumstances.
The mortgage cover gap across Britain
The potential financial consequences should homeowners die leaving their partner to foot the bill without insurance in place has been labelled the 'mortgage cover gap'.
Beagle Street says estimates vary for the number of mortgaged households which don't have a life insurance policy but it has taken the most conservative estimate (26% of mortgage households) to calculate the financial risk borrowers could be taking, using a combination of house price data, average loan-to-value rates and mortgage debt pentration.
The figures in the table show the total mortgage debt estimate for each region of England as well as for Wales and Scotland.
Find out more:Do I need life insurance if I have a mortgage?
Find out more:Do I need life insurance if I own my home outright?
If you have paid off your mortgage you will no longer need to have a mortgage protection life insurance policy however, your family will still have other costs that you may want to help them with.
So as long as you have dependents or an income that others rely on, a life insurance policy may br a good idea regardless of if you own your house outright or not.
Find out more:The cost of a life insurance policy
With the cost-of-living crisis continuing to affect millions of families, costs for life insurance policies are becoming even less of a priority.
However, the report revealed that a 30-year old non-smoker taking out a decreasing term life insurance policy of £200,000 would pay £10 a month. This is less than a phone contract, cinema ticket or two pints of beer.
Your life insurance premiums are calculated based on your age, health, pre-existing health conditions and your lifestyle (alcohol consumption, smoking and any dangerous leisure activities).
source https://www.which.co.uk/news/article/over-433bn-mortgage-debt-not-covered-by-life-insurance-do-homeowners-need-a-policy-a6HJi5r6ym6m