8 months for women to get cheaper life insurance
Women across the United Kingdom have just eight months left to take advantage of cheaper insurance rates when they buy life insurance, critical illness insurance and car insurance as a new EU ruling restricting insurance companies from pricing their insurance policies based on the sex of the applicant comes into effect in December.
The new ruling will put an end to the clear divide in the price of insurance policies between the different sexes and will see an increase in the amount women pay for insurance policies.
Life insurance, like all insurance policies is priced based on the risk to the insurer that you are going to make a claim. They work all of their prices around the statistics they have collected over time, and will charge a customer who is more likely to be involved in a claim more than one who is not.
Life insurance is one of those products that is priced based on statistics, and even though it sounds slightly inhumane, they base your life insurance premium based on the likelihood of the customer dying before the policy ends.
Statistically, women have a longer life expectancy, and are therefore less likely to die during the term of the life insurance policy than men, which is why they’ve been charged less for their life insurance for so long. The new EU ruling bans this, which will increase the cost of the insurance for women, and may slightly decrease the cost of life insurance for men.
Women should make sure that they make the most of the next eight months, taking out all the life insurance cover they will need for the next five years. Life insurance is a long term insurance policy taking out over a long period of time, so a 15% saving now can equate to hundreds, if not thousands of pounds over the next 25 years.
By taking advantage of the lower prices now, women know that their policy price will not rise when the changes come into effect, and that they can continue paying the lower rates for the rest of their policies.