More Than launches a 'cover calculator' in response to research revealing the the average lump sum from a life policy would provide for just over four years income for a family.
Research in the Swiss Re Term and Health Watch report indicates the average income left for a family would be just £93,399 which would not cover the average mortgage loan in the UK, which currently stands at approximately £105,000. The average expenditure per UK household according to National Statistics is £406 per week or £21,000 per year.
More Than suggests when taking out life insurance cover, to take stock of current income and out-goings in addition to outstanding mortgage. A cover calculator on More Than's website would help to establish how much cover would be necessary per household.
More Than head of personal finance Graham Hollebon says: “We're encouraging people to look at their life style and calculate how much they spend a week on the basics like food and housing as well as all the extras. By taking into account how many years this level of expenditure is required people can calculate the cover they need. Reviewing the level of cover regularly is also essential, ideally once a year.”