Life Insurance and the Ban on Premiums

Quite recently many words have been written on blogs and in newspapers in regards to the EU’s recent ruling which has put a definite ban on regulating premiums based on one’s gender, a law that comes in effect as of December. While most people are looking at it from a car insurance perspective, very few have actually touched on the subject as to how that ban affects life insurance premiums. To make this long story short, the ban is going to have very much the same effect as it will for the cost of car insurance; the premiums are going to rise. And so, many women are encouraged to take a life cover before prices inevitably skyrocket. But why exactly are the prices going to rise?

Well, to answer that question it is necessary to take a look at the current situation where life insurance is lower for women than it is for men, which is caused by the fact that women tend to live longer on average. However, because of the ruling made by the EU, the cost for life insurance is going to be brought up for women, regardless of the likeliness of the insurance needing to be paid out. As a matter of fact, Matthew Lloyd, the head of life insurance at Confused.com, predicts that women could end up paying 20% more for life insurance than before.

And so women are encouraged to take advantage of the remaining months before the bans come into effect to get their coverage at a reasonable price seeing as how the pre-ruling price will have to be maintained even if the policy has come into action. This is because unlike car insurance which needs to be renewed every year, life insurance is more of a long-term arrangement that doesn’t get reviewed unless circumstances demand it.

Numerous companies have decided to raise awareness of this issue, one of them being Scottish Provident. At the start of their campaign they asked random women on the street whether or not they had life insurance, and why. As it turned out, most of them didn’t have any life assurance because they saw it as being too expensive… only to awe in surprise as they were revealed how low the costs currently are. For example, a non-smoker who is thirty years of age can get a 25-year life cover with a payout sum of £200,000… only costing around £8.50 per month.

As it happens, the prices on life insurance have been falling down for a number of years now due to the increased competitiveness of the market, prompting each company to try and outdo the next one. As of now, prices are as low as they are ever going to be… but as you well know, that won’t last past December when they are going to rise like never before. If you haven’t got your life insurance yet, then it is highly recommended that you seize this opportunity to get a full and inexpensive life insurance; after all, few of us, if any, can predict what will happen in the future.

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