It's cheaper for girls to buy life insurance- for now

29 August 2012

We don’t know how many women read Bitterwallet, but we sense a kind of blokey atmosphere. We don’t know why this is, after all women are clearly better at being consumer savvy, but there you have it. Nevertheless this women-only consumer tip may also interest those readers who have a wife looking forward to a nasty accident in the near future*.

We’re talking about life insurance, and as you may know, EU fiddling has meant that the cheaper prices enjoyed by women for life insurance will soon be a thing of no more. The relevant EU directive comes into force in December this year, at which point there should be no discernable difference in premiums between men and women with the same standard details.

However, what that does mean is that right now, there is a money-saving opportunity. If you are a woman looking to insure your life, or a doting husband wanting to ensure you are protected should the worst happen, there is a window of less than four months to secure a cheaper price on life insurance. Of course, it remains to be seen whether insurers will increase premiums for women to match those currently offered for men or whether there will some averaging out at a price between the two. Yeah right. However, assuming women’s premiums will be increased to match men’s premiums, the increased cost of their insurance over the term of the policy could run into several thousand pounds., one of those comparison sorts, has researched the current price differential between male and female premiums and has found there is still quite a difference. Using 10 of the most popular UK life insurers including Aviva, Legal & General and PruProtect, Money-minder ran quotes for 20, 30, 40 and 50 year old applicants changing only the gender in each application and found that some insurers are still offering premiums up to 35% higher for men than for women.


The biggest price difference found in the research was returned by Skandia which offered a premium of £71.28 per month for a 50 year old male and £52.68 per month for a 50 year old female making the male’s premium over 33% higher than the female’s. The £18.60 per month difference over the 25 year term of the policy amounts to an extra £5,580 in the cost of the insurance.

In all of the quotes returned just one insurer returned exactly the same premium for a male and female applicant although this was only the case for a 20 year old applicant. PruProtect returned the same premium of £8.00 per month for both male and female 20 year olds but price differences were apparent from the insurer in the other age ranges.

The research also highlighted the need to shop around- when quoting for a 50 year old male the lowest premium offered was £44.24 per month and the highest was £71.28 per month. That difference of £27.04 per month would amount to £8,112 over the term of the policy. You could, of course, use money-minder’s comparison site to help you shop around. Other price comparison sites are available.

The EU Gender Directive comes into force on the 21st of December 2012 and from then on insurers will no longer be able to use gender as a factor for calculating insurance premiums including those for life insurance, critical illness protection and car insurance.

Ray Black IFA and founder of commented:

“Insurers will already be testing new underwriting processes but how long they leave it before switching over to a non-gender system is anybody’s guess. December 21st is the latest but insurers could switch at any time. For any women who feel they might need to arrange some life insurance in the next few years, now might be a good time to buy at least some of that cover to lock in the lower, gender based prices. Whatever premium you agree now, if it’s a guaranteed premium you’ll pay that throughout the entire term of the policy and the saving over a 20 or 25 year term could amount to thousands of pounds.”

*this is clearly a JOKE. We love women, but as the old adage goes, we couldn't eat a whole one.

TOPICS:   World News   Insurance


  • Idi A.
    Sam's articles rarely receive any comments, which is just downright rude (mind you they are usually pretty dry). Whatever. Here's a comment.
  • Fukc E.
    "The relevant EU directive comes into force in December this year, at which point there should be no discernable difference in premiums between men and women with the same standard details." I assume on the same date, life average expectancy will be adjusted so that men will live as exactly as long as women. If not then offering the two deals (life insurance for men vs. women) at the same price would not be fair; men (or their beneficiaries) would get more chance of cashing in for the same stake. As a man, I am looking forward to living long now!

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