Four big reasons to save now
Here at Life Insure we like to try and make sure our customers are able to save money on their life insurance and that’s why we offer the life insurance comparison calculator. Customers can type in their details once and then compare the life insurance quotes from the leading life insurance providers, buying the best value policy for themselves.
With so many different things affecting the cost of life insurance, for the last ten years it has slowly fallen every year, which is great news for customers. The last few months however have seen a series of announcements which are not so positive for life insurance customers, and which combined will see the cost of life insurance increase by around 30% over the next year.
To avoid the rise, the best things to do is to buy life insurance now, or to compare the price of life insurance now with your existing cover, and make sure you’ve got all the cover you’ll need for the next few years sorted out now.
Reason 1 – EU Sex Discrimination
The EU have decided that insurance companies should no longer be able to charge men and women different amounts based on their sex, and from December 21st this year they won’t be allowed to, increasing the cost of life insurance for women who are statistically less likely to die than men.
Reason 2 – Solvency 2 Ruling
Not coming into effect until January 2014, but still likely to affect the cost is another EU ruling that will force insurance companies to hold more cash in bank accounts, allowing them to invest less money. They’ll therefore make less and change more for the life insurance policies they provide.
Reason 3 – Tax changes
The latest budget changes have closed another loophole in the tax rules that allow life insurance companies to offset some of the profits they make from investments against the costs of running their life insurance business, in a move that is likely to push up insurance costs by around 20% alone.
Reason 4 – IVA regulations
Changes to the way financial advisors work are likely to cost the industry £3.6billion and that cost is almost certain to be passed onto the customer. The changes come into effect in January 2013 as well.