One in three Brits would need to sell home if partner dies, Tesco Insurance finds
Lack of life cover and rising costs could force homeowners to sell, research shows
Almost one in three Britons would be forced to sell the family home if their partner died unexpectedly, according to Tesco Insurance. The study found 30% would put their home on the market to cover mortgage costs after a death, 35% would raid savings, and 18% would take on extra work, even before other major outgoings such as childcare and bills are considered.
The findings come as homeowners remain under-protected against financial shocks. Three in five people with a mortgage do not have a life insurance policy that could cover mortgage protection, while four in five have no savings earmarked for emergencies. Mortgage payments are the top concern for households facing a death in the family, with 27% saying it is their biggest worry. Other coping strategies cited include turning to family or friends for help (11%), taking out a loan (10%), or renting out a room or taking in a lodger (8%).
The report outlines several life insurance options. Level-term policies pay out a fixed sum if you die within a set period, while decreasing-term insurance is designed to decline as a mortgage is paid down. Whole-of-life policies typically last for life and tend to be more expensive, with premiums influenced by health, cover amount and personal circumstances. The research notes that many homeowners still lack mortgage-protection cover, and that critical illness cover could help shield families in the event of a serious diagnosis. On average, life insurance with critical illness cover costs about £27.90 per month, according to comparison site Reassured.
Ban Mahsoub, of Tesco Insurance, stressed that losing a loved one can be devastating, and without protection families risk losing their home as mortgage costs rise on a reduced income. She advised having conversations about finances and protection early, including discussions with a partner about existing policies and future wishes. Planning ahead, she said, helps provide peace of mind and ensures loved ones are financially protected when the time comes. Once a policy is in place, she recommended calculating the household’s monthly running costs—including mortgage payments, energy bills, food and childcare—and aligning the coverage to real-world needs. Mahsoub also encouraged annual reviews of the policy, updating beneficiaries and cover levels as life changes occur, and consulting a financial adviser if unsure about the amount of cover needed.
The findings underscore the role of life insurance and proactive planning in stabilizing households facing unexpected death or serious illness, and highlight the market need for affordable protection options as households navigate rising living costs.