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5.33 Million Brits Could Be Leaving Dependents In Financial Difficulty After Failing To Update Their Level Of Life Cover

14 June 2011

New research(1) by Sainsbury’s Life Insurance reveals that over 5 million Brits could be leaving their dependants in serious financial difficulty because well over half of those (60%) with life insurance admit failing to update their level of cover following a significant change in their personal circumstances.

Life changing events such as getting married, having children, or buying a home with a bigger mortgage can all have an impact on financial commitments, yet worryingly, millions of Brits don’t take this into account and review their life insurance level of cover accordingly. Leaving loved ones behind to cover the cost of a mortgage, raise children, or take care of any other financial responsibilities you may have, without leaving provision, is a huge financial burden that could run in to hundreds of thousands of pounds.

The research revealed that the most common change in personal circumstances people are likely to have experienced since purchasing life insurance is changing jobs, cited by 3.58 million people, followed by having children (2.75 million) and getting married (1.71 million).

Sainsbury’s Life Insurance is urging people to consider any significant changes in their personal circumstances and ensure that they have adequate cover should the unthinkable happen.

David Cook, of Sainsbury’s Life Insurance said: “Many people invest in life insurance when they buy their first home as they want peace of mind that they’re covered should anything happen and they’re unable to pay the mortgage. However, clearly people are overlooking the need to update their level of cover once their personal circumstances have changed.

“Life insurance provides financial cover should the unthinkable happen and enables people to be secure in the knowledge that their dependants would receive sufficient funds if they were to die, which would help them to protect their standard of living.”

The new findings follow research by Sainsbury’s Life Insurance, carried out late last year, which revealed nearly one in two mortgage holders in Britain (43%) do not have their mortgage contributions covered by life insurance. Of those who pay a mortgage that isn’t covered by life protection, the research indicates that, on average they are personally responsible for an outstanding balance of over £44,000(3).

Table showing the number of people who have had a change in personal circumstance since purchasing life cover

 

Change in personal circumstances Number of people Number/ Percentage who have not updated their life cover
Changed jobs 3.58 million 82% (2.95 million)
Had a child/ children 2.75 million 65% (1.79 million)
Got married 1.71 million 46% (785,000)
Bought a home 1.66 million 59% (98,000)
Upgraded to a home that required a bigger mortgage 1.3 million 42% (548,000)
Moved in with a partner 1.14 million 51% (577,000)

 

Sainsbury’s Finance’s life insurance premiums start from as little as £5 a month (which is 16p per day) and are among the most competitive available, regularly appearing in best-buy tables. New customers with a Nectar card applying for a Sainsbury’s Life Insurance policy up until and including 4th July 2011 could receive £50 of Sainsbury’s vouchers(4).

When you know what cover you require, please contact Sainsbury’s Finance for a quote or further information on 0800 027 7166 (calls may be monitored and recorded). Further information is also available at www.sainsburysfinance.co.uk or at Sainsbury’s supermarkets. Sainsbury’s Finance does not offer financial advice.

-Ends-

For further information, please contact:

Ian Morris/Sarah Rowan
Citigate Dewe Rogerson
020 7638 9571

Notes to Editors:

(1) ICM interviewed a random sample of 2011 adults aged 18+ via online between 30th and 31st March 2011.  Surveys were conducted across the country and the results have been weighted (grossed-up) to the profile of all adults (over 18s).  ICM is a member of the British Polling Council and abides by its rules.  Further information at www.icmresearch.co.uk

(2) Sainsbury’s Finance Life Cover (Level Term Assurance and Mortgage Decreasing Term Assurance) is provided by Legal & General Assurance Society Limited. The cost of life cover will depend on the customer’s age, term of the policy, options selected and state of health.

(3) 803 GB adults with a mortgage were interviewed by ICM in an online survey between 24th and 26th September 2010.

(4) Take out Sainsbury’s Life Insurance up to and including 4th July 2011 and receive £50 of Sainsbury’s vouchers when you provide your Nectar card details. Nectar card details must be provided at point of sale. Vouchers will not be issued retrospectively. If all conditions are met, we will aim to send your vouchers 30 days after collecting your first 3 monthly consecutive premiums. Please allow time for delivery. If you cancel within this period your vouchers will not be paid. We reserve the right to cancel any policies should we suspect you’ve set out to defraud us. Offer only available to new Life Insurance customers, limited to 1 application per customer and cannot be exchanged for cash or used in conjunction with any other offer, promotion or coupon. We may withdraw this offer at any time and the offer may be amended. Employees of Legal & General cannot take advantage of this offer.

Sainsbury’s Finance:

To view our latest press releases and product information, please visit the Sainsbury’s Finance online media centre atwww.sainsburysfinance.co.uk/media.

Sainsbury’s was the first major British supermarket to open a bank, commencing trading in February 1997. Benefiting from a fantastic, trusted brand that enables us to combine the shopping experience with personal finance, Sainsbury’s Finance provides a range of quality products including insurances, credit cards, savings and loans. Our proposition is to make shopping more rewarding by offering customers great products at fair prices, while consistently rewarding shoppers for their loyalty and being easy to do business with at all times.  Our products consistently top Best Buy tables and regularly win awards for quality, price and service.

Sainsbury’s Finance recent awards include Best Overall Online Provider, Best Direct Personal Loans Provider, Best Online Credit Card Provider, Best Online Life Insurance Provider, Your Money 2010

Sainsbury’s Finance is a joint venture between J.Sainsbury plc and Lloyds Banking Group.
For further information and general Sainsbury’s Finance enquiries customers can call the freephone number on 0500 40 50 60 or visit www.sainsburysfinance.co.uk