25 Per Cent Of Population Going Without Loan Insurance
Times are starting to become hard for many individuals living in the UK today, with the average level of disposable income reducing by around 30 per cent and a large number of people only having enough money in their salary cheque to cover their essential bills and outgoings each month, many people are being forced to cut back on non essential items and luxuries in order to save some money.
But a recent survey has shown that people appear to be cutting back in the wrong areas, announcing that around 24 per cent of people with home owner loans or other personal loans do not have any insurance products to protect themselves, or their loans, in the event of anything untoward happening.
The survey, which was conducted by Fairinvestment.co.uk, revealed that 24 per cent of people have either not taken out insurance on their home owner loan, or have cancelled their policies in order to try and save money.
In the case of Payment Protection Insurance (PPI), which is designed specifically to cover the repayments on an individual’s personal loan or mortgage in the case of accident, sickness or unemployment, only twelve per cent of borrowers had taken out such a plan. The same is true of life insurance, with only 10 per cent of young borrowers having any cover and just over half of people between 51 and 55 having life insurance on their loans.
It would seem that the younger generation are less likely to see the need for insurance on their loans, with less than half of the 19 to 21 age range having any form of cover, clearly taking an “it won’t happen to me” attitude, whereas only 6 per cent of borrowers in the 46 to 50 age range had gone without any type of loan protection.
A spokesman for Fairinvestment. co.uk said “as budgets get tighter, I can understand why Brits are cutting back, but insurance should be one area that is sustained. When it comes to life insurance, young people should be more aware as you never know what is round the corner.
If you are the main breadwinner and have a mortgage loan or rent to pay and something happened to you, your partner or loved ones would be left to foot the bill, whereas a life insurance policy could cover such expenses.”
