Six million homes, half of all mortgaged residential property in the UK, could be at risk because the owners are not covered by any form of protection insurance, according to research from life and pensions provider Friends Life.
Home ownership can be protected by life insurance, critical illness cover or income protection. Then should the worst happen and a property owner dies or becomes ill and is unable to work, the payout from their insurer could be used to cover the cost of their mortgage.
According to a recent survey by Friends Life, nearly 60 per cent of people said their main source of income if they were diagnosed with cancer and unable to work would be their partner’s salary or savings.
But almost half of mortgage payers having £10,000 or less in savings and investments, far less than needed to provide for average household mortgage debt.
Steve Payne, managing director of UK Protection at Friends Life, said the findings were “almost unbelievable”.
“Buying a house is the biggest investment most people will ever make and it’s hard to comprehend why people wouldn’t want to safeguard that.
“It has never been more important for people to be getting advice about protection insurance. Property prices are continuing to rise so a home as an investment is getting more valuable – another reason why protecting it is so important.”
