New Budget ruling could see 30pc rise in Life Insurance cost
A new ruling passed quietly as part of the recent budget could see the cost of life insurance soar by as much as 30pc from April 2013, as the tax loophole that life insurance providers currently take advantage of is finally closed.
For the last ten years the cost of life insurance has steadily come down, as life expectancy has increased and the quality of medical treatments have seen less people die. That pattern looks set to end with a bang however as new measures come into effect.
It’s reported that analysts are calling the double whammy of unisex EU insurance regulation and the changed to the budget the ‘perfect storm’ and one which will drive up the cost of life insurance after April 2013.
The new tax ruling will see an end to the current loophole that allows life insurance companies to offset their costs against the profits they make from their investments, therefore paying less tax on those profits. Osborne’s new ruling is yet another that will hit us directly in the pocket, as the resulting loss in profits will be transferred straight to the consumers’ pockets, and we will have to pay more for the life insurance we buy.
The loophole closure will also see an end to the days where it is cheaper to buy critical illness insurance with life insurance attached, as opposed to just buying critical illness insurance on its own, as insurers are able to attach the loophole to the policy they offer and make savings, offering customers a cheaper deal.
If you are male, then the changes in November could bring down your costs momentarily, until they are pushed sky high, so that 5 month period could be the perfect time to load up your life insurance. Women have until November to do the same thing before their costs start to rise.
For a range of different life insurance options you can compare life insurance quotes at LifeInsure today and make the most of the low prices of life insurance now, whilst you still can.