New EU legislation could bring the price of Life Insurance back up
The cost of life insurance could be set to increase for the first time in over a decade in the next few months after new EU legislation regarding the way in which insurance companies distinguish between sexes comes into force. Those costs could then rise even further again as new rules in the budget which comes into force in April 2013 start to take affect
There are a number of different insurance policies which will feel the force of the new EU directive, which will ban insurance companies from charging one sex more for insurance than the other based on the sex of the applicant. At the moment women pay less for their life insurance, like they do their car insurance, because they are statistically less likely to die.
From November women will be charged the same amount for their life insurance as men, possibly leading to a very small fall in the cost for male cover, but a sharp increase in the cost of female cover.
Life insurance sales in general have been slow of late, as less and less people take out new mortgages when moving home thanks to the relatively stale housing market.
Here at LifeInsure we don’t believe customers should wait until the traditional point of buying their first home to take advantage of life insurance, and should buy it when they take on their first financial responsibility, like having children or moving in with a loved one, even if it is only renting.
Life insurance is designed to protect your family financially should the worst happen, and customers should not wait until the point they buy their new home to make sure that cover is in place, particularly as more and more people are now getting married before they buy the first home.
Many more have children before buying the first home and they should be looking to put a life insurance policy in place as soon as they can to look after their children. With customers only having to pay around £7 a month for £100,000 worth of cover for the 20 years their children live at home the insurance is hardly expensive, and should be described as very affordable.