Brits could be wasting over £310million a year by sticking with life assurance from their mortgage provider.
For those with a mortgage life assurance is a near necessity, providing financial protection for loved ones should the worst happen. However, despite the many competitively priced policies available, apathetic British homeowners are wasting over £310million every year on this cover.
New research published by the Post Office found that over a third of homeowners take out life insurance with their mortgage provider on application in a move that could cost them an unnecessary £2,000 during the life of their policy.
The Post Office found that only 16% of these homeowners believe that their mortgage provider is able to offer them the best value for money on their life insurance policy yet still many stay with them.
At a time when the cost of living is spiraling out of the realms of affordability for many this is a hefty amount that could be put to better use elsewhere.
However, while 35% of homeowners believed that taking out life assurance with their mortgage provider was compulsory or felt pressurised into doing so by a sales representative, a massive 50% of homeowners simply took out their lenders cover because it saved the hassle of shopping around themselves despite the potential savings.
When discussing the issue, head of protection at the Post Office, Duncan Caesar Gordon commented: "Homeowners’ finances are already being stretched on a daily basis, so it’s essential that people save money where they can."
"It is vital that homeowners understand it is not a requirement to take out life insurance with the same company which provides your mortgage. People have the right to shop around across the market and decide for themselves which product offers them the best value and is the most suitable for their life cover needs."
