Women given slightly longer to take advantage of low life insurance costs
Women have been given slightly longer to take advantage of their lower life insurance costs before the EU rules change the insurance market forever, thanks to announcements from two of the largest life insurance providers in the UK.
Both Scottish Provident and Bright Grey have revealed that they will leave changing the pricing structure on their policies for as long as possible, to give more and more women the chance to take advantage of cheaper policies.
The new rulings start in December and there was a fear that insurers would start levelling out the pricing for men and women well in advance of that date, increasing the cost of life insurance for women. The Royal London life insurers have explained that they are well into the testing phase of their new gender neutral life insurance plans, but don’t intend to bring it in until the last possible moment.
The magic date for rule changes is the 21st December, and from that date insurers, including car insurance providers will have to offer men and women the same price policies, because gender pricing will no longer be allowed.
With the price of life insurance around 15% less for women that it currently is for men, many expect the price of women’s life insurance to rise by the full 15%, rather than a drop of 7.5% for men, and a rise of 7.5% for women.
With women paying less because they statistically live longer, the changes are sure to increase their costs, so they are being urged to buy and review their life insurance now whilst they can still take advantage of lower rates.
Proposition director of Bright Grey & Scottish Provident, Roger Edwards says: “Policies must have started by 20 December 2012 to qualify for gender differentiated rates, so we will not offer our usual pipeline process.”