Menu

64% Of People Who Took On A Bigger Mortgage Did Not Review Their Life Insurance

01 September 2014

 

This press release is information for journalists only and is not intended to be an advert to be acted upon by consumers.

Research(1) from Sainsbury’s Bank Life Insurance reveals 64% of people who have moved up the property  ladder in the past five years, and have a bigger mortgage as a result, did not review their life insurance. Mortgage payments are generally the biggest monthly outgoing, so having adequate life insurance cover could give peace of mind that your family could afford to continue living in their home, even if you are not there.

Reasons homeowners with mortgages gave for not reviewing their life insurance(1) include thinking it wasn’t necessary (39%) and that they could not afford it (37%).

The findings(1) also reveal that  44% of homeowners who have a mortgage do not have any life insurance at all, and 10% of these people had life insurance but no longer do. A further 3% said they didn’t know if they had cover.

As official figures reveal that house prices rose by 9.9% in the year to April 2014(5) and the average property now costs £260,000(5), Sainsbury’s Bank Life Insurance is encouraging homeowners to ensure they understand what cover they have and decide if it suits their needs. Those who do not have cover should consider if this is something they do need. In addition, Sainsbury’s Bank Life Insurance customers have the flexibility to increase their cover with any lifestyle changes they may make.

Scott Gorman, Head of Sainsbury’s Bank Life Insurance said: “Moving home can be an exciting but stressful experience and with such a long checklist of things to do, it appears that life insurance is often forgotten about. We would encourage anyone who is moving home or may have just moved to take some time to check their policy and the level of cover they have and make sure it’s suitable for their change in circumstances.”

The research also suggests that of those who do not have life insurance, 53% live with a partner and around one in five people (20%) live with children.

For information on Sainsbury’s Bank Life Insurance call 0800 027 7166 (calls may be monitored and recorded) or visit www.sainsburysbank.co.uk/life. Alternatively, pick up a leaflet instore at Sainsbury’s. Sainsbury’s Bank Life Insurance does not offer financial advice.

 

-Ends-

Contact:

 

Lorna Gilmour, Sainsbury’s Bank                                                   Tom Wilson, Citigate Dewe Rogerson

T. 0131 338 2863                                                                       T. 0207 282 2842

lorna.gilmour@sainsburysbank.co.uk                                          sainsburysbankpress@citigatedr.co.uk

www.sainsburysbank.co.uk

Notes to Editor

  1. Sainsbury’s Bank commissioned ICM to conduct research on its behalf. ICM research interviewed a nationally representative sample of 2039 GB adults aged 18+ via the online omnibus between the 25 – 26 April 2014 which included interviews with 630 people who own their home with a mortgage.
  2. Sainsbury’s Bank Life Insurance (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. Double Nectar Points
    1. Offer only available to customers who take out a new Sainsbury’s Life Insurance policy (with or without Critical Illness Cover), excluding Sainsbury’s Over 50s Life Insurance Plan.
    2. You must continue to pay policy premiums for 2 years to continue collecting double points. 3. If the policy is cancelled, double points will cease from the cancellation date.
    4. Only the first Life Insurance policy registered against each Nectar account will qualify for double points. You may qualify for additional points by taking out other qualifying products.
    5. Base points on qualifying spend in Sainsbury’s will be collected as normal. A bonus equal to the total of these points each calendar month (subject to a monthly maximum of 2,500 points) will be credited to the Nectar account by the 10th of the following month, for up to 24 months from the policy cover start date. Excludes all Bonus point offers and points from Sainsbury’s Energy, Telecoms, Digital, Bank and all other Sainsbury’s services.
    6. The monthly bonus will only be calculated on, and credited to the Nectar card nominated at the time of application. The nominated card must also be used at the time of each Sainsbury’s purchase and points will not be allocated retrospectively.
    7. The Nectar loyalty programme is operated independently of Sainsbury’s Bank by Aimia Coalition Loyalty UK Ltd; and the collection and use of points is governed by the Nectar Collector Rules, set out in the registration pack and available at nectar.com
    8. Sainsbury’s Bank reserves the right to alter, cancel or withdraw the offer without prior notice.
  4. 12,000 bonus Nectar points in the first year: Take out a new policy by 29th September 2014 and you’ll receive 1,000 bonus Nectar points per month for 12 months. Each customer requires their own Nectar card to take advantage of this offer. Nectar card details must be provided at point of sale. Your points will not be issued retrospectively. If all conditions are met, your points will start to be issued 30 days after your policy start date and monthly going forward. If you miss a payment or cancel within the 12 month period your points will no longer be issued. We reserve the right to cancel any policies should we suspect fraud or misconduct. Limited to one award per customer in a 12 month period regardless of number of policies taken out. Cannot be exchanged for cash or used in conjunction with any cash back offer. Bonus points excluded from double Nectar points offer. Joint policies are entitled to one award only. We may withdraw this offer at any time and the offer may be amended. Employees of Legal & General cannot take advantage of this offer.
  5. ONS House Price Index, April 2014, published 17 June 2014.

 

Sainsbury’s Bank:

To view our latest press releases and product information, please visit the Sainsbury’s Bank online media centre at www.sainsburysbank.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 Bank 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 Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (register no. 184514). Sainsbury’s Bank is a member of the Financial Services Compensation Scheme.