| 30% of UK adults could be forced to sell their family home if their partner unexpectedly died | 60% of those with a mortgage don’t have a life insurance policy that includes mortgage protection | Life insurance provides loved ones with vital financial support – talk it through with your family and seek advice |
The death of a partner can be devastating – not just emotionally but also financially. A survey1 has revealed that 30% of UK adults could be forced to sell their family home if their partner passed away unexpectedly. Another 18% would need to take on a second job or a side hustle to make ends meet.
The research demonstrates the impact that a sudden bereavement can have on personal finances – especially when loved ones don’t have sufficient resources to cover big expenses, such as mortgage payments.
A lifeline in difficult times
The survey of 18 to 55-year-olds also revealed that 60% of those with a mortgage don’t have a life insurance policy that includes mortgage protection.
Life insurance provides loved ones with financial support when the policyholder dies – normally in the form of a cash lump sum. Policies offer different levels of cover and can be taken out jointly or individually.
Planning for the unexpected
Trusts can also be a way to help secure your family’s financial future. For example, life insurance policies can be written ‘in trust,’ which means the payout will not be included in your estate and therefore exempt from Inheritance Tax.
Making financial provision for loved ones in the event of your death can be complicated. Talking things through with family members and seeking professional advice are essential.
1Tesco, 2025
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments. Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. The Financial Conduct Authority does not regulate trust planning.
