Life Insurance costs could double – Are you sufficiently covered

15/03/2011

Now is the best time to review your protection needs and ensure that the cover you need is in place and at current guaranteed rates.

Insurers could be banned from using age as well as gender to set premiums if the European Union adopts age discrimination laws for goods and services.

The move, due to be debated in the summer, would have far reaching implications for life and medical insurance, with premiums for consumers in some cases potentially doubling.

If this becomes law, insurers that set prices according to age could be challenged in the European courts.  The directive could mean the cost of products such as medical, life and critical illness cover could rise for younger people as age is one of the most important risk factors for insurers – even more so than gender.

Paul Dixon – Chartered Financial Planner