Women to Pay More for Life Insurance
When the latest EU Gender Directive comes into force in December this year, women, who have traditionally paid less than men for their life insurance will find they have to pay the same as men; the cost of their life insurance will rise.
As statistically women live longer than men, their life insurance has cost less. However, on 21 December 2012 the latest EU Gender Directive will force this to change.
When this Directive comes into force, women will have to pay the same as for men.
As you can see from the table below, there will be a significant increase in costs:
Why buy life insurance?
Many people think they don’t need to buy it and often make this decision from a point of ignorance or a case of ‘having their head in the sand’, believing that the worst will never happen to them. That they will never be faced with finding that their income has been stopped because the main bread winner perhaps has become critically ill or perhaps even died.
Single parent families can be the most vulnerable. Three quarters of single parent families and almost 70% of divorced parents with two or more children feel financially under protected.
Luke Ashworth, CEO of protected.co.uk, said: “Our industry has made life insurance so complicated, time-consuming and expensive, often trying to sell premiums that are unaffordable, that many people have been put off. I set up protected.co.uk in order to do precisely the opposite”.
With particular reference to women, he added: “They are particularly vulnerable because of the increase in single parent families and the number of women working full time as the main breadwinner.
“Those women who stay at home and look after the family are also undervalued. Even if they have no financial income, the cost of paying for someone to replace them is very high and a remaining parent is unlikely to be able to fill that role and hold down a full time job.”
MoneyHighstreet comments: “At least considering Term Life Insurance or indeed Whole Life Insurance is vital. Make a conscious decision as to whether or not you want to buy it, don’t just sit back and think all will be fine with your personal finance matters; it may not.
“No one really likes to think about death but it is as much a part of life as everything else, if you are considering taking out life insurance you should be looking ahead to the future and thinking about how your loved ones will survive after you have gone.
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