One in eight (13%) homebuyers who purchased their mortgage via a broker did not discuss their protection needs, Canada Life has revealed.
This rises to a fifth (20%) of those aged 55 and above, despite this age group being more likely to suffer from health concerns.
Natalie Summerson, head of sales for individual protection at Canada Life, said: “Buying a house is the biggest financial obligation many of us will take on in our lifetime.
“It’s an obvious moment to pause and consider your protection needs.
“Nobody wants to run into financial difficulty, but homeowners should have a plan to continue paying their mortgage if something happens to their main source of income.
“Relying on savings isn’t viable for many, and certainly isn’t good for financial resilience.
“Advisers have an open door to make sure their clients understand the importance of putting appropriate protection in place.
“By taking a rounded view of their client’s finances, circumstances and needs, brokers can prove their value beyond just mortgage advice.”
The majority (76%) of homeowners discussed protection products during their initial session with their broker.
Life insurance was the most commonly purchased product (57%), followed by critical illness (36%) and income protection (31%).
More than one in four homebuyers who did discuss protection did not go on to make a purchase (28%) leaving them unprotected as a result.
Of these, a quarter rejected the opportunity to take out cover because they felt they couldn’t afford the premiums.
A slightly smaller proportion (19%) felt they could not afford the cost as the mortgage itself was costly.
Nearly a quarter (23%) didn’t see the value in protection products, whilst 18% thought they would never need them.
Two in five homeowners (42%) could only cover essential bills for up to two months if their household lost its primary income, and a further 30% could only extend to six months.