Renters are less likely to have life insurance than homeowners, reveals survey

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19th June 2019 13:53 - Financial Services

Renters are less likely to have life insurance than homeowners: A recent survey of 2,004 people in the UK has revealed that tenants are less likely to take out a life insurance or critical illness policy than homeowners. Only a quarter (26%) of renters polled said they had a policy, compared to 41% of homeowners.

Despite not having made provision for life insurance the survey found that more than half of the renters polled (54%) are concerned about the financial implications of them dying or facing a critical illness, compared to 48% of homeowners.

According to the poll by Sainsburys Bank, passing away without having life insurance in place is something one in five (21%) private tenants worry about on a weekly basis, compared to 16% of those who own their home.

When asked about the reasons why they have not taken out a life insurance policy, 29% of those who rent their homes said they didn't think they had enough equity or money to have a policy, compared to 11% of homeowners. For 18% of renters it was more a case of not getting around to setting it up, while 14% hadn't because they do not have any dependents to provide for.

Looking at why people take out life insurance, the poll found that buying a home is the top reason given (34%), followed by starting a family (17%) and getting married (12%). Becoming ill was also given a reason, by 9% of respondents.

Karen Hogg, Head of Insurance at Sainsbury’s Bank commented on the survey: “As more people are raising families in rented accommodation, we need to shift our thinking in terms of life and critical illness cover only being relevant for people with a mortgage.

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