The UK have had orders from Brussels which will mean that insurers will no longer be able to dual price their life cover as from 21st December 2012. In the UK the cost of life cover is cheaper for women than it is for men, but this is deemed “unfair” and hence the changes are being made.
This means that after this date life cover, critical illness for most people will most likely be increasing by up to 20% per annum. But those gains or losses are set to be largely exaggerated or offset by the silent stealth-like I-E taxation changes. The combined effect of Gender and I-E is that overall prices for life and critical illness are set to increase by around 10-15%.
The Gender directive ruling only applies to ‘new contracts’ concluded after 21 December. So, all existing contracts can continue on gender specific rates.
If you’ve got cover already, don’t worry you’re safe. But if you want to change anything or increase your cover, let’s talk now as we anticipate there will be a rush for cover before the 21st December 2012 deadline. Call me now on 01753 626866.