Life Insurance - Personal and Business Protection

Biphoo

5 Oct 2017

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How to Protect Your Business with Life Insurance

Based on this fact, insurers know that life insurance for women is likely to come later in time, so they will have paid more in premiums by the time a claim is made. This means prices for this half of the population can be set a little lower. This situation, however, is due to change as a result of a European court ruling in March 2011, which decreed that from December 2012, insurers would no longer be allowed to charge different premiums solely on the basis of gender. In theory, this will eliminate price differences between the sexes – but unfortunately, this is unlikely to be good news for women, who may well see costs rise.What is life insurance for?

Life cover is designed to ensure that your family and dependants do not suffer financially as a result of your death. For example, if they are relying on your income to cover living expenses and housing costs such as mortgage repayments, it is a good idea to set up a life policy that guarantees these can be met if the worst happens. Women are increasingly becoming the main earners in their households – as such they might be more likely to consider taking out Life Insurance Premium. But that is not to say that life policies should only be taken out by a family’s chief breadwinner. There are also serious financial implications of the death of a stay-at-home parent: after all, their work – in bringing up children and looking after the home, for example – has considerable value, even if they are not paid directly for it. If the worst happened and a stay-at-home parent died, their partner – and therefore the whole family – would very probably face a significant extra financial burden. Either the surviving parent would have to work less in order to devote more time to their family, or they would have to pay for extra domestic help.

Business & Personal Life Insurance and Benefits | Life Insurance Commentary in the Media

It is clear that in circumstances such as these, it is important for both partners to have life insurance.The end of different life premiums for men and women European law largely bans discrimination on the basis of gender when it comes to doing business, or providing goods and services. For example, only in exceptional circumstances is a company allowed to state a preferred gender on a job advertisement.But insurers have, until now, successfully argued that they should be able to charge different rates to men and women based on the demonstrably different risks presented by each group. Money Saving Tips and car insurance are two of the areas where these differences have the biggest impact. As stated above, women’s life expectancy is on the whole longer than men’s, which provides insurers with a statistical basis for charging women less for life cover.As far as car insurance is concerned, the evidence shows that women are less likely to be involved in accidents or make expensive claims than men, so they pay less for motor cover on the whole.

However, the European Court of Justice ruled in March 2011 that the practice of charging different premiums based on gender was nonetheless unlawful discrimination, and told the insurance industry that it would no longer be able to do so from 21 December 2012.Will women’s life premiums rise? No one yet knows exactly how life insurance premiums will be affected by the ruling. But it is worth stressing that if you already have a life policy with fixed premiums, it is very unlikely these will change as a result of the European court’s decision. There is a strong possibility, however, that any new policies taken out by women will become more expensive as the date of the rule change approaches. By taking out a life policy well before the law changes, women may be able to get cheaper premiums: but there is no guarantee this will be the case. There are other reasons to act now, however: bear in mind also that the older you are when you take out life cover, the more expensive it usually is. And the sooner you sign up for a policy, the sooner your family is protected.

The length of the cover. If you are taking out life insurance to protect your family or to make sure your mortgage could be paid off in the event of your death, you may only need your policy to last for 20 or 25 years. If you buy the cover that is limited in this way – known as term insurance – it is likely to be cheaper than the whole-of-life cover, which is guaranteed to pay out eventually.Cut your cover as time goes by. If your Affordable Life Insurance is designed to ensure your mortgage commitment, bear in mind that the amount you owe your bank or building society is likely to fall as you make repayments. You can set your life insurance up to reduce the amount of cover you have to match your mortgage – this is known as decreasing term insurance, and it will be cheaper than a policy which offers the same protection over time. Get fit. Lifestyle issues such as smoking or being overweight can increase the amount you pay for life insurance. If you quit smoking or lose a lot of weight, be sure to tell your insurer as you may be able to negotiate a discount on your premiums.A further money-saving tip Saving money on Life Insurance Claims from Women isn’t just about reducing your premiums. It is also worth thinking about how to make sure your dependants can get hold of any payout with the lowest possible tax charge if the worst does happen.

Biphoo

5 Oct 2017

72 Views