Research finds younger borrowers avoiding life insurance
June 18, 2024 by Mark
Surveys and Statistics
New research into younger people in the UK who have a current mortgage has found that close to three out of every 10 of them have not taken out any life insurance policies.
This research comes from insurance provider Beagle Street, and it saw them talk to 2,000 younger people who have existing mortgage loans. The results reveal that close to 1.7 million of them within the 18 to 40 age range do not have any life insurance at the moment. In total, that is around 28%.
The research also found that the debt last year from mortgage borrowing that was not protected through life cover amounted to over £433 billion. That is the total debt from mortgage loans that families would owe to lenders should the main financial provider die without warning.
In terms of the reasons why so many mortgage borrowers have not sought life insurance, the respondents gave a range of answers. 23% stated that it was simply not an issue they considered a financial priority right now. 22% indicated that it was something that had never occurred to them, while the same percentage said that it was unaffordable just now due to rising living costs.
Ryan Griffin from Beagle Street said to Mortgage Strategy that:
“It’s really important for people to put plans in place and protect themselves and their families if the worst were to happen.”
This is something that mortgage advisors with CeMAP training could raise with their customers during the process of applying for a loan.
Written by
Mark
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