Women face countdown to buy life insurance
Women are facing a countdown to take advantage of cheaper life insurance as the new EU gender insurance directive draws ever closer. In the past insurance companies have been able to price insurance policies based on the gender of the customer, and women have taken advantage of cheaper life insurance, car insurance and health insurance, although do suffer when it comes to buying an annuity.
The new ruling will make it illegal for insurance companies to take gender into account when making calculations, and will increase the price of insurance products for women as a result.
Despite the deadline not being until the 21st December, some insurance companies are already starting to price their policies in such a way, making sure they comply in plenty of time and it’s a race against time for women to make sure they are properly covered.
One of the leading insurers in the UK, Scottish Provident has launched a marketing campaign to make people aware of the changes, and to encourage women to make sure they buy their life insurance now, before the costs go up.
Proposition Director at the firm, Roger Edwards explained, “It’s a simple message to get across, buy now or pay more later, prices won’t be this cheap again.”
Those who dismiss the reports as merely marketing strategy to bring in customers should be aware that experts believe that price increases for women will be around 15% in December off the back of the changes, and then in the following April, new government budget measures will remove a further tax loophole uses by life insurance companies, which should see prices go up a further 20%.
The loophole, which currently sees life insurance companies able to offset the costs of offering life insurance against the profits they make on investment will net the treasury millions more pounds every year, but at the expense of life insurance customers buying policies after the 6th April 2013.
For women, the race is on now, and buying cover now will save you money in the long run. With £200,000 worth of cover over 25 years costing a typical 30 year old woman around £20 a month, an extra 15% increase will see that figure rise by £3, or an extra £900 over the length of the policy.