Last March the European Court of Justice (ECJ) ruled that insurance companies could no longer differentiate between male and female when calculating annuity rates and insurance premiums.
The ruling comes into effect on the 21st December 2012 and in the run up to implementation we will be looking at how it will impact on different aspects of financial planning ~ firstly we will look at protection and in particular the impact upon females.
Women’s longer lifespans mean they currently pay less for life assurance than men, but this will change from the 21st December as the EU’s gender directive means that insurance companies won’t be able to charge men and women different amounts based on gender.
The reality at present is that women do tend to devalue what they are worth by placing a much lower monetary value on their lives compared to men ~ yet ~
More women nowadays run their own businesses or are in highly paid employment and as a result are the main breadwinner, moreover many women manage a home and look after a family whilst relying on just their own income.
Lest not forget also, the real value of all those women who work full time maintaining the family home whilst their partner generates the household income.
We have witnessed considerable social change over recent years, but the general reluctance of women to protect themselves and their families seems not to have kept pace and is rather worrying.
Back in December 2011, HM Treasury suggested that the consequences for women could be that they will be paying up to 15% more for their life assurance protection as a result of the EU directive…
Ironically, maybe this might be the call to action needed to encourage a review, to plan and protect what’s most important in their lives ?