It’s ‘risky’ not to take out life insurance with your mortgage, says expert
June 7, 2008 by admin
Filed under News, News-Mortgages
Although people are trying to save money as they find their finances increasingly squeezed by the credit crunch, neglecting to take out life insurance along with a mortgage can be “risky” an expert has advised.
Simon Firmin, life and pensions adviser for Plan Insure, explained that “protection is vital” and that people should take out full protection, although he expects the number of consumers doing so will drop as they have less money to spend during the economic downturn.
Research by My Mortgage Direct found that only one in five people are buying life assurance along with their mortgage deals.
Mr Firmin also said that people who shop around for their life insurance rather than getting it from their mortgage provider may be able to find a better deal as well as avoiding the extra burden being added to their mortgage repayments.
Commenting on what people should do when looking for insurance, he said: “We’re always going to advocate independent advice, particularly for things like critical illness cover and income protection [where] there’s a wide cost band.”
