We carried out a survey recently which revealed that more than 80% of women are completely unaware of the forthcoming introduction of the European Gender Directive this year.
It may sound very technical but the Directive, which comes into force on 21st December, will have a very real impact on the cost of life insurance. In a nutshell, the Directive prohibits insurers from pricing premiums based on gender, which means that companies will be forced to charge men and women the same amount.
Women currently pay less than men for their life and critical illness cover, due to their longer life expectancy but the Directive is expected to push the cost up. Although awareness of the Directive was low, more than 82% of those we surveyed correctly anticipated that the impact will be higher costs for insurance premiums. Despite that, 49% felt that equalising the price for men and women was a good thing.
The exact cost implications are not yet known but it’s estimated that women could see an increase in regular premiums of 15%; potentially adding hundreds or even thousands of pounds to the total cost of a policy.
It’s important that women are aware that the cost of life cover will soon increase and take the opportunity to take out or review policies before the price hike takes effect. With so many without any life cover at all (36% of respondents and more than 41% of their partners), the time is right to review you and your family’s protection and avoid additional and unnecessary costs.
If you have an existing life insurance policy, you can check in an instant if you might be able to save money by using L&C’s One Minute Lifecheck Calculator.