You sign the paperwork on your insurance, file it away in a drawer and think no more about it, safe in the knowledge that your family is covered if anything happens to you. But are you?

More and more people are discovering that the policy they took out just won’t cut it if things go pear-shaped. Latest research by SunLife reveals that the biggest cause of the so-called protection gap – when your insurance doesn’t cover what you need it to – is caused by under-insurance, rather than having no insurance at all. According to SunLife almost a third (29%) of people take out life insurance when they take out a mortgage, while nearly a quarter (23%) take out cover after the birth of a child.

However, the average life insurance payout in the UK currently stands at £51,500, which would only cover 62% of the average outstanding mortgage (£83,000) in the UK. And that £51,500 would cover less than a third (31%) of the average new mortgage, at around £167,000. So the harsh reality is that many thousands of people wouldn’t even be able to pay off their mortgage if the main breadwinner in the house passed away. And what about all the other expenses in life and all the other household bills that will keep dropping on the doormat? Scary isn’t it.

But it doesn’t need to be. A little time spent checking your insurance can prevent a lot of heartache and worry for the future. The insurance business is complicated and, as the figures above show, far too many people get the wrong or insufficient cover when they take out a policy. Talk to us about insurance and we’ll guide you through the maze. For an informal chat, contact us on 01723 384558 or 07767692653.