UK has £2.3 trillion ‘”protection gap”
Mortgage lending without buying life cover has created a £2.3 trillion protection gap, an industry expert said today.
Claire Moyles, a spokesperson for Sainsbury’s Bank, said anyone aged 18 or over should seriously consider buying cover for their mortgage and family.
One in three Britons have no life insurance, according to ABI.
Free financial advice
“There’s a £2.3 trillion protection gap in the UK so there’s a massive amount of underprotection. It’s obviously not top of everybody’s agenda,” Ms Moyles said.
“Part of the reason the gap exists is because people are taking out a mortgage without any life insurance.”
She also advised young people to shop around to obtain the best deal, as premiums can vary a lot for lower age brackets.
ABI figures show that between 2005 and 2006, £41,168 million was paid on premiums for life insurance, while £45,469 million was given in life insurance benefits.