Life insurance 'must be prioritised'

Norwich Union is warning people to ensure life insurance is seen as a top priority alongside paying off the mortgage.

The insurance firm says that there are very few sections of society for whom taking out life insurance would not be a necessity.

Research by the Association of British Insurers earlier this year revealed that in 2005, the UK insurance industry paid out over £160 million per day in pension and life insurance benefits.

Figures also showed that one in three people living in Britain have no life insurance – and a further one in three have not renewed their life insurance for five years and may not be covered.

Darren Dicks, a spokesperson for Norwich Union, said: "People may prioritise paying the mortgage as the high interest and then covering themselves after that. But it's something that should be assessed.

"If you think about life cover, the amount that it costs compared to what it actually protects mean it's something that most people should take out. There are only very few segments of the population that is doesn't really apply to."

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