Millions wasted by buying mortgage lenders life cover

Tue, 01 Apr 2008

Homeowners in Britain could be overpaying by £310 million each year by taking out life insurance with their mortgage provider, which many wrongly believe is obligatory.

According to research by the Post Office, more than a third of people completing a mortgage application purchased life insurance through their mortgage provider, costing each of them as much as £2000 extra.

The main reason for people opting to take out life insurance in this way appears to be confusion with 35 per cent revealing they felt pressured into purchasing it, or believing it was compulsory to take it out with the same provider.

Duncan Caesar-Gordon, head of protection at the Post Office, said: "It’s 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."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.