Homeowners who have just got their foot on the property ladder should consider taking out some form of life insurance – particularly if they are cohabitees.
Research suggesting that nearly 50% of cohabiting homeowners would have difficulty meeting their financial commitments should the worst happen to their partner has highlighted the risk taken by those who don’t have adequate policies in place.
Figures from the Office of National Statistics show that more than 40% of people aged between 25 and 34 are homeowners, and cohabiting couples are the fastest growing family-type in the country. These younger homeowners – many of whom are yet to reach their full earning potential or do not have substantial savings to fall back on – could be particularly vulnerable if they are left to foot the bills themselves.
“Neglecting to take out life insurance could be a costly oversight, because when mortgages are held in joint names, both parties are equally responsible for paying it,” said Scott Gorman, of Sainsbury’s Bank, which published the research.
“Our research shows that many believe they would find it difficult to meet their financial commitments without their cohabitees’ income, so we would urge homeowners to consider life insurance.”
He added: “Some homeowners, especially young buyers, may think that life insurance is an additional expense too far, but taking out some cover [even just] to assist with mortgage payments would be better than nothing.”