Women face 20pc life insurance hike
WOMEN have been warned that the cost of life insurance will shoot up after December. It's all thanks to the EU banning insurance products being priced on gender.
If women are planning to take out a new policy they should act now, according to adviser John Geraghty of LA Brokers.
The advice also applies to those who are renewing a life policy that has come to an end.
New rules will mean they will end up paying more from December 21 next. That is when an EU directive will come into force banning insurance products being priced based on gender.
Women pay between 10pc and 20pc less for life insurance and mortgage protection cover than men. This is because they live longer than men.
Moves by insurers to rebalance their pricing to bring it into line with the new directive could mean the cost of life policies shooting up by up to 20pc for women, Mr Geraghty said.
Men could see the cost of their cover falling.
The typical cost of life assurance for a women, who has €450,000 worth of cover for 20 years and is aged 35, is €26 a month.
A man, with the same risk profile, will pay €32 a month.
However, the new rules are not likely to see women losing out also when it comes to permanent health cover, which is taken out by the self-employed as it pays out when the person is ill and can't work.
That is because women tend to claim more often than men, Mr Geraghty said.
"Two-thirds of the claims on permanent health insurance are made by women. They seem to be more accident prone and more likely to get ill," he said.
A typical permanent health insurance policy (PHI) costs €100 a month for a man, but €150 for a women.
The likelihood is that the cost of PHI will rise for men, but go down for women from the end of the year.