Adverse Mortgages UK

Many people in the UK are taking on increased amounts of debt without adjusting their life insurance policies accordingly, a supermarket bank has claimed.

Sainsbury's Bank has suggested that the total national gap between how much people are worth and how much they are insuring themselves for could be as much as £2.3 trillion.

Distributed across the UK's 18 to 64-year-olds, this equates to over £59,000 each, it added.

The bank believes that consumers are forgetting to include the financial worth of their unpaid work (such as cooking and cleaning) when working out an insurance policy, something Steve Johnson, the company's head of life insurance reiterated.

"When assessing the amount of life insurance you need, you should not only consider your debt and incomes, but also your dependants and the value of the unpaid work you do," he said.

Consumers who smoke may want to consider giving up in order to save on their insurance policy - as well as their health.

© Adfero Ltd

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