The EU Gender Directive will come into force on the 21st December 2012 (G day), which along with a raft of other tax and legislative changes, will lead to increases in the price of some protection insurance. The Directive will make it illegal for insurers to charge different insurance premiums on the basis of gender, which means that women, who at present typically benefit from lower life insurance premiums than men, should be prepared for a rise in prices as should men who typically have lower income protection premiums. The countdown to ensure consumers lock into the most affordable rates has, therefore, well and truly begun. Protection specialist LV= have announced they will switch to gender neutral rates earlier, on December 1st, but is also offering a G day guarantee. Specifically, if a protection application is made prior to December 1st, and further medical evidence is required, LV= will offer premiums based on the medical situation on the initial application and if further medical evidence indicates rates need adjusting, the premium will be based on the current gender specific rates rather than the new, higher, gender neutral rates. There is a 3 month window for the medical evidence to be supplied and existing rates applied. The impact that “genderless pricing” is likely to have on cost is not fully known yet, as insurers aren’t disclosing what their new rates will be. However LV= have speculated that price changes could be as much as a 22% increase for women on life assurance and up to 20% increase for men on Income Protection with Critical illness costs increasing for men and women around 6% and 16% respectively. What is clear is that now is the time to take action to review existing covers and also buy new policies to fill protection gaps to avoid the price rises and increased cost over the life of a policy. At L&C our advisers offer fee -free protection advice from a wide range of insurers and can tailor advice specifically to individual needs. To take advantage of this service, call 0800 073 1932 and beat the deadline for gender neutral pricing of protection policies.
Just 3 months to go before gender neutral pricing of insurance comes into force.