Canopy Capital

covering finance since 2001

insurance

Countdown to G -Day

What is the Gender Directive?

On 1 March The European Court of Justice (ECJ) ruled that  insurance companies won’t be able to charge people different amounts based on gender

When it comes to the cost of insurance, you could say that women have had an easier time of it than men. But that is about to change…

 What financial products are impacted upon by the Gender Directive?

The Gender Directive will apply to any financial product that uses gender as a factor for calculating the cost of insurance premiums. The following products (and this is by no means an exhaustive list) will be affected by the new ruling:

  • Life Cover
  • Critical Illness Cover
  • Income Protection Cover
  • Annuities (retirement income)
  • Car Insurance

 Indication of how policies will change in price after the 21st December
Male Female
Income Protection +25% -30%
Critical Illness -5% +10%
Term -10% +20%

Let’s see how this will affect your wallet ( The Losers)

For a 39 year old non-smoker male buying £2000 per month income protection – paying out after 8 weeks to age 65.

Male

Current Premium Potential Gender and I minus E effect Indicative premium from 21 December 2012 The impact
£63.95 + 25% £79.93 An increase of £15.98 a month. Amounting to £4794.60 more over the full term

Female

For a 45 year female non smoker buying £150,000 life cover over a 20 year term

Current Premium Potential Gender and I minus E effect Indicative premium from 21 December 2012 The impact
£20.03 + 22% £24.44 An increase of £4.41 a month. Amounting to £1,058.40 more over the full term

source LV= analysis, June 2012

These statistics stand as a hard reminder to  ACT NOW, particularly if you have been wavering on whether or not it’s the right time to look at applying for personal protection .If you wait, you may end up paying far more for the same policy.

To increase the likelihood of beating the G Day deadline, we should have in mind a target 21 October deadline for submitting protection cases. Complete the contact form  so we can help you protect yourself and your loved ones before policy prices increase.

So don’t search the Internet any longer for the best price. We pride ourselves in finding the best suited