LONDON, November 14, 2012 /PRNewswire/ --
The current financial circumstances of many ordinary members of the public have led to an interesting discrepancy in the payments they choose to keep up with and those they choose to leave aside. A recent survey suggests that although 64% of people have an active mortgage arrangement that is yet to be paid off, 60% do not currently have an active life insurance policy.
The latest study was conducted by Confused.com and was aimed to shed some light on the relationship between personal debt and life insurance. Financial insecurities are likely to be behind the choice of many to prioritise mortgage payments and more acute concerns over life insurance, but some experts are concerned that those who make this decision are unaware of the wider implications.
Life insurance is seen as an important product for those concerned about how their dependents will fare when they die. Those who have a suitable life insurance policy in place are in the somewhat more comfortable position of knowing that their mortgage may be paid off in part or in full when they pass away. Life without enjoy no such assurances.
The team at Lifebroker UK is concerned that many homeowners with dependents do not take into account how their mortgages will be repaid if they should pass away suddenly. The Confused.com study suggests that 40% of people have dependents who could not afford to make those all-important mortgage repayments on their behalf if the worst should happen, and yet the startling figures regarding life insurance figures demonstrate that many are running precisely that risk.
Specialist advice is available via websites such as http://www.lifebroker.co.uk and the current expert guidance is for consumers to be meticulous about the payments they keep up with, but to be decisive and act quickly when it comes to protecting the interests of their dependents.
Life insurance ought arguably to be looked upon with the same gravity as mortgage payments and other primary concerns to avoid the unsavoury situation in which dependents are compelled to deal with major financial issues during bereavement.