If you are looking to take out any kind of life insurance then you need to act fast. From the 21st of December 2012 the new laws of gender pricing for life insurance come into force meaning women will be priced the same as men. Whereas females currently enjoy premiums quite a bit cheaper they will soon be priced the same due to European laws. This will results in life and critical illness premiums rising by about 15% and slightly less for income protection. This of course will affect all business protection policies just the same as normal life and critical illness. Men may see a slight drop in prices for life and critical illness but will see a rise in income protection. It’s unclear of course of exactly how this will work as different clients with different circumstances will be priced differently and of course you will also find that prices will vary between providers.
From January 2013 most life insurance providers will also be hit by the new laws regarding tax. This basically means that the providers will be asked to pay more tax to the treasury having the knock of effect of price rises to the customer. Its predicted that these rises could be as much as another 10%.
This double whammy price rise will hit all people who take out cover after these dates, seeing prices of up to 25% higher in January than prices now. Anyone who currently has a policy will not be affected.
We are advising clients to take out polices before these dates and obviously guarantee the premiums for as long as possible. Please speak to one of our advisers for more information.
We use a range of insurance providers and their products could be more suitable for your company. These articles are for information only and does not constitute as financial advice in any way