Simmonds Mortgages

Mortgage Brokers covering Berkshire and beyond

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Life Insurance Myth Busters

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Many UK households don't have life insurance, despite having significant financial responsibilities. Most concerning, 42% of mortgage holders don't have life cover either. So, why is there such a low take-up of life insurance in our country?

Well, it doesn't help that there are a lot of myths about life insurance that can make people reluctant. Below, we'll debunk some of the most common myths to finally sort the fact from the fiction.

My insurer will never pay out

Many people believe that insurers rarely pay out on claims. However, recent statistics published by the Association of British Insurers (ABI) offer a different side to this story.

In fact, the percentage of protection claims paid out in 2019 was 98.3% - a record high. Moreover, 2019 saw £3bn paid out on life insurance claims, up by more than £19m year on year, with 97.4% of term life and 99.99% of whole of life insurance claims paid out.

It's too expensive

With a mortgage, bills and children to feed, the idea of adding a further expense to your outgoings can be off-putting. However, a widely quoted study reveals that people without life insurance typically estimate it to cost nearly 400% more than it actually does. In fact, a lot of life insurance policies can be highly cost-effective. For example, term-life insurance is often cheaper than whole of life cover.

I don't have children, so I don't need it

Whether or not you have children, a life insurance policy can provide financial security for your loved ones, who may be saddled with heavy costs should you die unexpectedly. These may include, for example, unpaid debts such as student loans or funeral expenses.

My spouse is the breadwinner, not me

Your spouse may bring in the household's income, but it is likely that you provide other vital services tht would be expensive to replace. For example, if you died, how much would it cost for your spouse to pay for childcare so that they can continue working? They could face having to reduce their hours or, in the worst case, give up work altogether.

But I'm young and healthy!

As the Coronavirus pandemic has shown us, illness and injury can strike when least expected, so you're never too young to take out cover. What's more, taking out life insurance is much cheaper when you're younger - if you wait until you're older, then age-related health risks can really ramp up your policy premiums.

Helping you sort the fact from the fiction

Life insurance can be a confusing business. There are so many policies out there - and so many myths that need busting! If you're not sure, then please get in touch with our expert advisers, who can provide guidance on the type of policy that's best for you.


As with all insurance policies, conditions and exclusions will apply

We can help you!

If you would like more information or help with your mortgage please call us on 01344 225 149 or 07979 690 056. Alternatively please send us an email at

Your home may be repossessed if you do not keep up repayments on your mortgage




Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.


What our Customers Say...

Your home may be repossessed if you do not keep up repayments on your mortgage.

Simmonds Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Registered Office: Simmonds Mortgage Services Ltd, Lexham House, Forest Road, Binfield, Berkshire, RG42 4HP. Registered Company Number: 1152 8784 Registered in England & Wales.

There may be a fee for arranging a Mortgage and the precise amount will depend on your circumstances. This will typically be £399.00 paid once the mortgage offer has been confirmed.

There may be a fee for arranging an Equity Release or Lifetime Mortgage and the precise amount will depend on your circumstances. This will typically be £799.00 and is due on completion of the mortgage.

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