The Cost Of Life Insurance For Women Is Set To Increase November 16th, 2012
The European Directive which was agreed in March 2011 is due to come into practice on 21st December 2012 and will make it unlawful for any insurance provider to differentiate policies or costs on the basis of sex.
This means that previous reductions in premiums based on gender will no longer be acceptable and the price of specific insurance policies could dramatically increase.
Increases In Premium Costs For Women
In general, women are healthier and live longer than their male counterparts. They have fewer accidents when they drive and do not suffer from serious illnesses as often. This means that the premium costs for life insurance, critical illness and car insurance has always been lower for women, but this is all set to change with the new EU Gender Directive.
As there is no real possibility of insurance companies reducing the prices for the male policy holders, the only viable way to bill men and women and take out this differentiation, is to increase the premium charges for women across the board, without offering any further benefits at all.
Though this change has been made with a view to make the sexes more equal, in actual fact it’s going to have a huge impact on working mums and those that run their own businesses.
Any business that has a female key person will see the costs of insuring that individual increase by up to 20%-%30 for life insurance cover and further rises will also be experienced in critical illness cover for females across the board. Such rises could make cover almost unaffordable for many small businesses and sole traders, yet these are products that are essential to the smooth and continued running of any business, no matter what the size.
Increases in Premium Costs for Men
In the same way that life related insurance premiums are not going to fall for men, premiums that men have been previously enjoying at a discounted rate are now also expected to rise.
This includes annuities and income protection premiums and could result in a double whammy for many husband and wife partnerships that are going to be hit from both sides.
Planning For The Future
The sad fact is that if such increases come into force as expected there will be no real way of avoiding the increase in costs.
Having no critical illness cover in a small business or stopping life insurance payments is simply not a chance that many financial astute business women are willing to take. But there are ways to try and limit the impact that this new directive may have.
As gender differentiation is removed, insurance companies will be looking for other ways to provide more accurate premium prices.
When the time for policy renewal arrives, don’t simply sign file the form and accept the hike in premiums, look around for special offers and alternative policies that may be more competitive.
By taking active control of insurance costs and seeking the best advice, it is possible to limit the costs of these hikes but unfortunately this is yet another case of Europe creating a headline without really considering the cost of their decision on the hard working mums living in the real world.
To compare life and critical illness insurance quotes visit www.criticalillnessinsurance.org.uk who are an independent online life & protection insurance brokerage. They can compare quotes from all of the UK’s largest and most well known providers to help find you the most suitable policy at the best price.
This entry was posted on Friday, November 16th, 2012 at 9:00 am and is filed under - Get Organised, - Money Saving Mum, Work/Life Balance. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.