News Article
Life Insurance Comparison Protects as New Mortgage Owners Disregard Cover
Research firm Defaqto has revealed that there is a rising number of newly approved mortgages for which recipients have no life insurance. A vital part of financially securing such a loan, policies are paramount in the current economic climate, with life insurance comparison sites offering an easy way for individuals to find adequate cover.
Highlighting the risks involved in taking out a mortgage with no life insurance, Defaqto said that almost one third of newly approved loan recipients had no financial protection. Such cover is paramount so that if death or critical illness affects the homeowner, debts can be covered and not left to the responsibility of family members. The news comes as 925,000 new mortgages were approved in 2009, whereas only 363,973 new life policies relating to mortgage loans were written.
Speaking of the worrying figures, insight analyst for protection at Defaqto, Ben Heffer, explained "the figures suggest that there are many people taking on debt whose loved ones would have no means of paying it off for them if the worst happened." He added that in the current economic climate, where unemployment continues to rise, it was vital that individuals sought financial stability. With a potential loss of income, and death or critical illness always a consideration, homeowners could be leaving significant costs to their loved ones. And with a huge array of life insurance comparison sites offering quick and easy cover, it was vital for mortgage holders to have a life insurance policy.
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