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Half of mortgage holders have no life cover


Springtide Capital have been helping mortgage holders to protect themselves and their families with life assurance and critical illness cover for many years. However, no matter how great the benefit and peace of mind, our experience tells us that any additional expense reduces willingness to take out insurance policies.

 This has recently been reflected in research from Scottish Widows, stating that “50% of the UK’s mortgage holders have no life cover in place, meaning that 8.2 million people are leaving themselves and their families financially exposed if the unforeseen were to happen.”

It’s critical

The research also revealed that “only a fifth (20%) of the UK’s mortgage holders have a critical illness policy, leaving many more millions at risk of financial hardship or losing their home if they were to become seriously ill.”

When you purchase a life and critical illness policy, you’re actually buying peace of mind so that mortgage payments will be met, which is often the last thing you or your family would like to manage when illness strikes or worse.

Springtide Capital have two dedicated and experienced Protection Consultants, Andrew and Jackie.

They will take the time to understand your circumstances, ask any relevant health questions and provide a quotation, which is tailored to your needs – ensuring that you and your family are protected.

Jackie, Protection Consultant at Springtide Capital, commented: “I consider life and critical illness extremely important when you take out a mortgage or other loans. Although it isn’t a condition of a mortgage application, lenders do like to understand that you have considered the consequences of not taking one out. It really is better to be safe than sorry.”

Living on a single income

33% of respondents admitted “that if they or their partner were unable to work for six months or longer due to ill health or personal injury, they’d be unable to live on a single income.

“And more than two-fifths (43%) of those who couldn’t cope with a single wage say they would resort to dipping into their savings in order to survive. Yet 43% say their savings would last for no more than a couple of months and 15% don’t even know how much they have, meaning they could be relying on backup which doesn’t actually exist.”

Three months and counting

In addition, “just under a quarter (23%) could only afford to pay household bills for a maximum of three months if they or their partner were unable to work, and 23% could make a maximum of just three monthly mortgage payments. Another 15% admit they’re not actually sure how long they’d be able to cope with their mortgage payments.

“Welfare reforms make the case for financial protection all the more pressing. A quarter (25%) of mortgage holders who say they’d be unable to live on a single income if their partner were unable to work also admit that they’d rely on state benefits to ensure they could manage financially.”

Henry Knight, director at Springtide Capital, added: “I’d urge mortgage holders to seek advice on protecting themselves should the worst happen. A quote can be produced very quickly and tailored to the budget level of the client. Cover becomes priceless when it’s required.”

To find out how we can help you with your mortgage protection needs simply call 020 3040 4400.

SOURCE: Scottish Widows Research June 2016