Buy cover now for next five years
Experts are calling on customers to take advantage of the current low life insurance costs, and are urging customers to buy the cover they will need for the next five years now. Many customers are currently covered for their circumstances when it comes to life insurance, but their plans over the next five years are likely to make those needs change.
Those families looking to move to a more expensive house, looking to expand their family or who are looking to remortgage to release funds to carry out building work or to pay off other debts should consider what their life insurance needs will be then, and to act on those needs now.
The cost of life insurance is set to increase several times over the next year or so, with various different changes to the rules and legislation surrounding the insurance companies, and the people who sell life insurance.
The first change will come in December this year which will see the EU abolish all gender pricing, so insurance companies will no longer be able to charge women less than men. The change will see the cost of life insurance for women increase as a result.
At the end of this year the way in which financial advisors offer life insurance advice will also change, and they will have to be more clear about the way they charge for their advice, which the outcome likely to push up prices.
In April the government has announced plans in this year’s budget to amend the tax loophole that currently allows life insurance companies to offer tax relief to life insurance companies on their investment profits, by letting them offset those profits against the cost of running their businesses.
The final change will come the following year when new EU rulings will force all insurance companies to have more cash in the bank in reserve for a rainy day.
All the changes will push up the price of life insurance, with some experts predicting price rises of around 30%. Getting the right level of cover for the next few years now could be the way forward for customers all over the UK.