Protection - Black and White for Bright Grey

Research carried out for Bright Grey, the protection specialist arm of Royal London Group, shows that among people who've bought their first property in the last 12 months 40% have taken out a mortgage for a term of more than 25 years, a third say all their savings have been wiped out buying their property and only 14% are able to save more than £100 a month.

Bright Grey's Product Director, Roger Edwards, comments that the findings are hardly surprising, given property prices in the UK have continued to rise and the traditional 20-25 year term mortgage is simply no longer affordable for many people.

Mortgage lenders are increasingly offering longer term mortgages and higher multiples to help people get into the property market and own their own home. Noting that as a result, demand for longer term protection plans has increased as more people want to cover this longer term mortgage debt Bright Grey has confirmed that it's extending the term of its Critical Illness Cover and Life or Critical Illness Cover to up to 40 years, to enable people to match these longer term liabilities.

Worth pointing out is that whilst traditionally it's been life cover that has been available over the longer term, for many people, critical illness cover is just as important as life cover, if not more so for those who have no dependants, which is the case for many first time buyers.

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2006-10-25 08:48:03 © Moneyextra.com