Currently women pay less than men for life cover. However, with the EU’s new gender directive coming into force in December that cost is set to go up. The ruling, from 21st December 2012, will mean that men and women will be treated equally when it comes to pricing up insurance.
With recent studies showing women have 50% less life insurance than men, now is a perfect opportunity for insurers. They have the perfect message: Buy now or pay more later. To target women, insurers need to make them see protection as a “must-have” rather than an optional.
Life insurance cover is accessible and not as expensive as you might think. For a price of £17.90 a month a non-smoking 30 year old woman can have life cover of £150,000 and £50,000 of critical illness protection for 25 years. This is same as buying a high-end nail polish every month.
Do I need life insurance?
Life insurance protects your family financially should you die unexpectedly. If you are married with children and your death will result in a loss of income that could put a financial strain on your family, then yes you need life insurance. If you are single the financial costs of your death will have to be covered by your relatives and partner.
Any outstanding debts, funeral costs, medical bills and taxes would need to be paid after your death. Unless you have enough financial resources this could become very draining for surviving family members.
For someone young, single and with no dependents, life insurance probably isn’t essential.
How much life cover should you buy?
There are several different types of life insurance, but simply put you should buy enough to cover the loss of income and any outstanding debts. A good policy will not just cover the loss of your income but also additional costs that result from your death – childcare, funeral expenses, taxes etc.
If you feel you’re a good candidate for life insurance then consult several insurance brokers to make sure you get the most suitable product for your situation. For women who have considered life insurance in the past, but never got round to it, make 2012 the year you purchase it.