The report shows that whilst mortgage holders are better than most at protecting themselves, there is still a lot of scope for improvement. The key findings include:
- Nearly a fifth (19%) of mortgage holders said they had no idea how they would cover their household bills if they or their partner were unable to work due to incapacity, serious illness, an accident or death.
- Only 7% of mortgage holders have income protection insurance.
- 64% of mortgage holders believe their employer will pay them a full salary or a full salary followed by a partial salary if they are off work for a long period of time.
Mortgage holders, more than any other group, seem to be aware of protecting the asset value and status achieved through their efforts. The group has the highest rates of financial protection by far, when compared to other segments of the British public. Of the protection policies held by the public at large, the vast majority are owned by mortgage holders, including 75% of critical illness cover and 69% of income protection policies.
Protecting a home, and our place in it, is clearly about protecting a way of life in the present and everything we’ve done over time to get to this point. Not only that, but changes in the way we live, such as the increasing numbers of home-based business owners and people working from home online, is likely to drive us to put adequate protection in place. Usually the area to live in and specific properties homeowners select are carefully chosen for a number of reasons, from school catchments, family environments and quality of the location, to the proximity of work. Once you have taken on a mortgage to gain your desired living space and lifestyle, it stands to reason to make efforts to adequately protect your investment, something many homeowners seem aware of.
Sources: http://reference.scottishwidows.co.uk/docs/SW3205-chap1.pdf
