Renters are Missing Out on Life Insurance Protection
According to research by Sainsburys Bank earlier in 2019, it found that only 26% of tenants are likely to have life insurance. This is very low compared to 41% of homeowners.
It is believed that this is a result of more people renting for a longer time than before, with tenants falling into the ‘protection gap’.
Taking out a mortgage is often the ‘trigger’ to purchasing a life insurance policy, as well as income protection insurance and critical life insurance protection.
What is the tenant ‘protection gap?’
In the past, renting was considered as a temporary arrangement and traditionally associated with younger people. Both of which are not incorrect.
As the age of those renting is increasing, a ‘protection gap’ is forming where those who need to take out life insurance are not yet doing so.
Renters are not required, or even prompted to take out life insurance when moving into a new property, unlike when taking out a mortgage.
Do tenants need life insurance?
If the worst were to happen, your life assurance policy would pay out a monetary lump sum to your loved ones. This money would help them continue to live their life assisting with additional financial burdens. It could also be used to pay off debts, paying rent, or even schooling for children or their child care. All of these things are important to tenants and not just home owners. You can read more about life insurance in our article, All you need to know about life assurance.
The cost of a life insurance policy could be a few pence per day, or monthly or yearly lump sums. Several factors are taken into consideration to determine your policy premium such as age, lifestyle and general health.
Life insurance for expats
Here at Healthcare International, we provide life insurance policies for those living away from home. Whether you are renting as a tenant or a home owner abroad, we can assist you and protecting yours and your family’s future.
To find out more about our products and to get a quick quote, or even a call back, please visit: https://www.healthcareinternational.com/life-insurance-quote
Life insurance in your home country may not be valid abroad.
If you took out a life insurance policy in a different country to the one you are living now, it is highly likely that the policy is no longer valid. If you have moved abroad, or are looking to move aboard, discuss this with your current provider as soon as possible as you may need to make alternative arrangements.