Drewberry Insurance: Calculator Shows 1 in 10 First Time Buyers Die Before Mortgage Repayment

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• Publié par: drewberry-insurance
• Nombre de lectures: 12
• Langue: English

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Drewberry Insurance: Calculator Shows 1 in 10

First Time Buyers Die Before Mortgage

Repayment

PR Newswire

LONDON, June 12, 2012

LONDON

,

June 12, 2012

/PRNewswire/ --

Drewberry Insurance launches a new calculator to help consumers understand

the true risk of death during their mortgage term in order to highlight the

importance of mortgage life insurance for family protection.

In 2011 there were 888,100 new mortgages and re-mortgages but only

571,000 mortgage related life insurance policies taken out (1). Although not all

of these borrowers may have required cover it does suggest there is still a

significant protection gap for mortgage life cover.

It is possible that borrowers underestimate the risk of passing away during their

mortgage term and therefore decide not to take out protection.

This

calculator is designed to educate mortgage borrowers on what the

risk really is in order to help with making a truly informed decision

about financial protection

.

Tom Conner, head of protection at Drewberry Insurance, says,

"As disposable

income falls due to high inflation and low wage growth there is a risk that

borrowers may see life insurance as a luxury and decide that the risk of passing

away isn't high enough to warrant taking out cover in this economic

environment.

"The trouble is that people often perceive the risk of passing away as being a

lot lower than it actually is. If this calculator helps to clear up this misconception

then consumers can actually make up their own minds as to whether cover is

worthwhile based on the facts, which is vital when family security is at stake."

How it works - Calculating the risk

After inputting your age, gender and mortgage repayment length the mortgage

life insurance calculator returns the likelihood that you would pass away during

the mortgage term.

As an example, assuming a 30 year mortgage is taken out and the average age

of a first-time buyer is 33 years old (2), an estimated

1 in 10 male and 1 in

15 female first time buyers would die during the mortgage term.

Naturally the calculator does not take into account smokers versus non-

smokers and other individual health or lifestyle factors but serves as an

average based on Office for National Statistics (ONS) mortality estimates (3).

Notes to editors

Data reference sources:

(1)

http://www.protectionreview.co.uk/images/uploads/ePR_142_April_20121.pdf

(2)

http://www.cml.org.uk/cml/publications/newsandviews/104/390

(3)

http://www.ons.gov.uk/ons/publications/re-reference-

tables.html?edition=tcm%3A77-223324

About Drewberry Insurance

Drewberry Insurance is a trading name of Drewberry Ltd, which operates as a

whole of market insurance intermediary in the health and protection insurance

markets. Drewberry Insurance offer specialised insurance broking services for

a range of individual and group policies, through the following focused

websites:

http://www.drewberrygroupinsurance.co.uk - Informational resource for

implementing group health and protection schemes as part of an employee

benefits offering.

http://www.drewberryincomeprotection.co.uk - Informational resource for

arranging income protection insurance and accident and sickness insurance.

http://www.drewberryhealthinsurance.co.uk - Informational resource for

arranging both individual and family private health insurance.

Drewberry Ltd is an appointed representative of Chase Templeton Ltd which is

authorised and regulated by the Financial Services Authority, register number

311612. Registered address: Vantage House, 1 Weir Road,

London

, SW19 8UX.

For further information please contact:

Andrew Jenkinson

Drewberry Ltd

Vantage House

1 Weir Road

London

SW19 8UX

[phone]

http://www.drewberryinsurance.co.uk

[e-mail]