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Insurance

Life premiums see hike of 58%

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
05/11/2012

Life premiums for the whole of life insurance have seen a rise of 58% overnight for women over 40, according to comparison site payingtoomuch.com.

Some women aged 40 have seen rises from £48.30 to £76.40. The equivalent increase for a male in the same age band is 40 per cent.

This increase comes from PruProtect, the largest provider of underwritten whole of life insurance in the UK.

Michael Ward, managing director of payingtoomuch.com said: “Virtually all customers under age 50 are likely to have a premium increase, the younger the more the increase.”

The rise in premium rates is a direct result of the EU Gender Directive due for implementation by 21 December 2012 which demands that insurance premiums cannot be calculated differently based on the sex of the applicant, broadly speaking women have paid less than men because they are likely to live longer.

Ward added: “Existing customers aged over 55 might be able to make a saving by re-quoting on the new gender neutral terms. Having analysed what PruProtect have done, we wonder if this is what the whole market might do before 21 December so those who want to beat such an enormous hike with other providers must act now.”