More than a third - 35% - of people would need to use their savings and almost a fifth (18%) would need to take on additional work to stay afloat in the case of a partner passing away, research from Tesco Insurance has revealed.
The research - which studied the financial preparation of UK households in the event of a tragic event such as losing their partner - showed that almost a third of adults (30%) would be forced to sell the family home, suggesting that many are underprepared financially for unexpected circumstances.
Despite the scale of the risk, including having to sell their home, 60% of people with a mortgage have no life insurance policy with mortgage protection and 80% have no savings specifically for emergencies or financial security.
Unsurprisingly, mortgage payments remain the top financial concern in the event of an unexpected death, with more than a quarter (27%) naming it as their biggest worry. When asked how they’d cope financially, 11% said they would rely on family, 10% said they would take out loans, and 8% said they would rent out a room or take in a lodger.
Ban Mahsoub, partnerships director at Tesco Insurance, who have launched a life insurance product in conjunction with Aviva, comments: “Losing a loved one is devastating, but for many families, that heartbreak could be followed by the unimaginable loss of their home. At a time when people should be focused on grieving and supporting each other, financial pressures can turn tragedy into a long-term crisis.
“That’s why we’re proud to announce the launch of Tesco Life Insurance, to help families plan ahead and protect the people who matter most.
“Planning for a time when you’re no longer here, and having honest conversations about practical solutions like life insurance, can be difficult. But having a plan in place brings real peace of mind and gives your loved ones the reassurance that at such a difficult time in their lives, they’re more likely to be financially protected.”
