Aegon recently released protection claims statistics that reveal people are likely to be under protected for the amount of mortgage debt they have.
Stephen Crosbie, Protection Director at Aegon UK, said: "The latest figures from the Association of British Insurers (ABI) and Group Risk Development (GRiD) reported that life insurance claims paid out in 2016 had an average value of £75,000.
"This implies that people could be under-protecting themselves based on their mortgage debt alone by around £44,937. Our own claims experience in 2016, reinforces this trend and shows that our life protection customers could be under-protecting themselves by more than £19,000 based on their mortgage debt alone.
"This life protection shortfall could leave loved ones facing a debt that may no longer be manageable on a single or no income."
What people should consider when assessing their protection needs:
- What's your total monthly household expenditure?
- How would you pay for everyday bills and essentials without the main income in the household?
- Do you have any protection policies already in place?
- What's the difference between the amount of protection policies you have in place and all your monthly outgoings (including your mortgage or rent)?
- How much life insurance do you really need?
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