Mortgage debts to outlive us

Almost fifty per cent of people would leave their families to cope with their debt once they died because they had failed to take out adequate insuran

17:13 19 July 2004

Almost fifty per cent of people would leave their families to cope with their debt once they died because they had failed to take out adequate insurance, a new poll revealed.

Two-third of people surveyed said they recognised the importance of providing for their family when they died, but 43 per cent admitted they did not have any policies.

The poll, taken for Alliance & Leicester, showed that just over a third of those asked said they should have insurance to cover their mortgage repayments, but only 29 per cent had done anything about it.

"The findings show a huge divide between the expenses that people would like to protect in the event of their death, compared to what cover they actually have in place," said product manager for life assurance at the bank, Paula O'Reilly.

"But it also shows that most people do not see the financial impact that a bereavement could have on their dependants' lifestyle."

A quarter of people said they would like repayments on their car to continue after their death and a similar number said they had arranged for this to occur.