Families from the Midlands are less well prepared to face the future when it comes to issues like death and serious illness, according to research from Norwich Union.
Families from the Midlands are less well prepared to face the future when it comes to issues like death and serious illness, according to research from Norwich Union.
The research revealed that only 73% of couples from the Midlands with children have life insurance to pay off their mortgage on the death of a partner, leaving more than a quarter of couples at risk of losing their home if a partner were to die. The most protected are Northern families where 87% of couples have life insurance to protect their mortgage.
The research also suggests that Midlands families are the least covered against illness than anywhere else in the country. Only 22% of couples from the Midlands have critical illness cover (this is insurance which pays out a lump sum if a serious illness is diagnosed) compared to 40% in the North.
Norwich Union commissioned the research among working mothers following the huge rise in repayment mortgages, which do not have essential life insurance built in. According to the Council of Mortgage Lenders around 68% of new mortgages are now on a repayment basis compared to just 15% in 1992.
Willie Mowatt, head of protection at Norwich Union, commented, “Only 12% of women felt that their salary alone would cover the mortgage and they would still have the worry about the security of their job. Our research also found it is vital that, as repayment mortgages become more popular, that more people are not gambling with their homes”.
Full details are available by visiting the website on www.norwich-union.co.uk or by calling 0800 015 2530.
Notes to Editors
- 1 in 4 males and 1 in 6 females aged 30 will suffer a critical illness such as cancer, heart attack or stroke before the age of 65.*
- 1 in 10 males and 1 in 33 females aged 30 will suffer a heart attack before they are 65.*
- 1 in 10 males and 1 in 8 females aged 30 will contract cancer before they are 65.*
- 1 in 21 males and 1 in 32 females aged 30 will have a stroke before they are 65.*
- Despite all this it is estimated that less than 12% of the UK working population held critical illness policies during 2000.*
- Fieldwork for research undertaken by Norwich Union took place during July 2001
- CGU plc and Norwich Union plc merged on 30 May 2000 to create CGNU plc, the UK’s largest insurance group and one of the top-five insurers in Europe with substantial positions in other markets around the world, making it the world’s sixth largest insurer based on gross worldwide premiums.
- CGNU’s principal business activities are long-term savings, fund management and general insurance, with worldwide premium income and retail investment sales from ongoing business of over Ł27 billion and assets under management of more than Ł200 billion(as at 30 June 2001)From October 2000, the combined life and pensions, general insurance and retail fund management businesses in the UK operate under the Norwich Union brand, while the institutional investment business operates under the Morley Fund Management brand.
- Norwich Union’s news releases are available on this site
- A selection of images are available from the CGNU Newscast site at www.newscast.co.uk
- An ISDN facility is available for studio quality interviews. Call the press office on 08703 666873
* Source: GE Frankona – May 2001
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