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
| 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