Protecting yourself and your loved ones may never be this cheap again
A ruling by the European Union is due to come into force this year and the industry expects it to result in an increase in the cost of both life and critical illness insurance.
The European Court of Justice (ECJ) ruled on 1 March 2011, in the case of Association Belge des Consommateurs Test-Achats (ASBL) and others v Conseil des ministres (Test-Achats), that different insurance premiums or benefits based on gender are contrary to the fundamental right to equal treatment laid down in European law. The ruling strikes out an exemption that sought to allow insurers to distinguish rates between men and women on actuarial grounds.
This means that putting provisions in place for you, your loved ones or your businesses, to protect against the adverse effects of ill health, loss of an income or death may never be this cheap again.
According to Money Marketing earlier this year it is predicted that a combination of the EU ruling and tax changes that will affect insurance companies could result in male premiums rising by 5 per cent and female premiums increasing by 20 per cent to 25 per cent.
So now presents a real opportunity for you to review your protection needs and put plans in place to ensure you and your family are adequately protected.
Subjects such as long-term illness, the risk of contracting a critical illness, or even ultimately death, aren’t ones that we like to think about too often, however now is the time to think about these important covers and benefit from the current premiums available today.
It also presents an ideal opportunity for you to review your current protection policies to ensure that you have sufficient cover in place, and to fill any gaps in your provision before the premium increases take effect.
Contributed by Michael Rogerson, Director at Ashburton Financial Consultants.
If you would like to discuss things further, please contact Philip Raggett, Head of Private Client.
Published: 17 Sep 2012