After the 21st December 2012, men will pay more for Income Protection cover
There is some bad news for men looking to take out an Income Protection after the December deadline. Due to an EU ruling which will prohibit insurers from charging men and women different premiums, men will face increases in the cost of cover. According to insurer, Irish Life, females are currently paying around 55% more than their male counterparts for Income Protection. This is because women are statistically more prone to develop illnesses preventing them from working, and therefore increases their chances of putting in a claim.
Following the introduction of the gender ruling next month, it is most likely that Income Protection premiums will go up for men. However, if you are a man and arrange to take out cover before deadline day, the planned increase can be avoided thanks to being locked into a fixed premium for the the entirety of the term length agreed with a financial advisor. For those who act now, the savings that can be made are great. Take the example of a non-smoking 42 year old man earning an annual gross salary of €40,000.
He would pay €143.56 a month for cover. A 42 year old woman who does not smoke grossing the same wage pays €227.27 per month which is over €80 a month. Considering that men will soon pay the same as women, there are significant savings to be made if quick action is taken – and it’s more simple than you think. If you are male and currently looking to review your Income Protection cover, now is the time.
