NB Please email for Price Comparison Chart for women before and after the Gender Directive comes into effect.
Statistically, women live longer than men, so have traditionally have paid less for life insurance. The latest EU Gender Directive changes this and means rates will rise from 21st December this year so that men and women pay the same. This means on average women will pay 30% more. The only way to avoid paying higher rates is to take out a policy before December.
Why bother? How would your family cope financially if the worst happened? Would they be able to continue the lifestyle they’re accustomed to without your income? Most people think it will never happen to them but statistics tell a different story. One in seven people in the UK die before they are 65, and yet 61% of families have no financial protection. Every 36 minutes in the UK a parent dies leaving their family with no financial back up plan. Curiously, more UK adults insure their pets (15%) and mobile phones (13%) than they do their income in case of ill health or death. (12%)
Single parent families are the most vulnerable. Three quarters of single parent families and 68% of divorced parents with two or more children said that they felt financially ‘under-protected’.
Why this reluctance to insure? Luke Ashworth is the CEO of protected.co.uk:
“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”.
He is particularly concerned for women. Luke says “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”
Sammie is the single, working mother of Alfie (1). She said, ‘We spend all our time doing what’s best for our children and yet we don’t stop to think about what would happen if we weren’t here. I was surprised to find that taking out life cover turns out to be far less expensive than you think and the earlier you take out a policy the lower the monthly premiums. Having life cover and a will is the only responsible thing to do if you have children and even spending a tiny amount every month will make a huge difference if the worst were to happen’.
Getting around the price hike:
Fixed premium plans that are already in place when the ruling comes in are unlikely to see a price rise, so the best way to ensure that your price doesn’t increase is to take out life cover before the ruling comes into effect. Sometimes an insurer will need to obtain further information from your doctor too which can take up to three months so the sooner you act, the better your chances of avoiding the price gain.
Not arranged your life cover yet?
Then follow protected.co.uk’s top tips to financial health with life insurance:
1. Understand the different types of cover
The most popular type of life insurance is level term cover, this means that the amount you are insured for will always stay the same for the duration of the policy, if you are insuring yourself for £100,000, this will never change. Level term cover can be used to protect your family and for an interest only mortgage.
Decreasing term cover is the other option which is normally used to cover a repayment mortgage. This is a cheaper option as your cover would go down as you pay your mortgage off.
Whichever option you choose, make sure you read the policy documents carefully, and that you fully understand their contents, before you sign anything, to ensure you are getting exactly what you want, need and are paying for.
2. Where to buy cover
Many people still see life insurance as something that needs to be purchased through a bank or Independent Financial Advisor, however, actually it is just as simple to purchase as car insurance which most people these days prefer to do online without even speaking to anyone.
Always compare more than one insurer, using Protected.co.uk’s price comparison service you can compare 10 of the UK’s top life insurers in one place. The prices are always guaranteed to be cheaper than Bank’s, IFA’s and the insurers websites directly.
3. Don’t Delay
If you know that you need life insurance, don’t delay in buying it. The younger you are, the cheaper the policy. Life insurance goes up in price every year you get older. The insurers base their customers’ premiums on risk assessment – in the case of life insurance, the key risk is how likely it is that you will die.
4. Consider single policies instead of joint cover
If you are looking to cover both you and a partner, it can sometimes be more beneficial to purchase the cover as single policies rather than joint. Doing so could provide your family with double the amount of protection and will only cost slightly more, so it is always worth investigating both options before committing.
5. Setup your policy in trust
A trust is a free and simple way to ensure that the money from your life insurance will go to the people that you want it to in the event of your death.
If you don’t put your life insurance policy in Trust, the sum it pays out will more than likely become part of your estate and it could mean that your family are liable to pay inheritance tax.
Protected.co.uk provides cover from the UK’s top insurers and has a lowest price guarantee.
Notes to Editors:
For more information contact: Rachel Corcoran at Lily Pad PR email@example.com|07791 110910
We believe that a culture of greed has created a lack of trust in financial companies.
The efforts of the industry to sell protection have actually had the opposite effect. It’s no wonder families believe it’s unnecessary, unaffordable, unlikely to pay out and time-consuming.
At protected.co.uk, we think the only way to convince more people to protect themselves is to offer ease and value. We are flying the flag for companies who are genuinely committed to ‘doing the right thing’.
A focus on need - not greed - means that we allow families to choose the right amount of protection for their budget. Our exclusive “Protect & Save” discount scheme makes protection accessible to everyone. We believe that it is far better for a family to have a small amount of cover than no cover at all.
Great additional benefits include up to £600 cash back with every policy, extra help for those with medical conditions and a 24/7 claims helpline
The “Protected Foundation” supports the 22,000 children in the UK who lose a parent each year.
* 30 days to act as of 21st November 2012
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