I highlighted this topic a little while ago, but due to the upcoming deadline in December this year, it’s important that I return to it today. This is because what is being decided by European Law for us here in Scotland will not just affect Life Insurance. It will also affect people looking for Critical Illness Cover, and pension planning for those purchasing Annuities as they prepare for their retirement.
On 1st March 2011 The European Court of Justice (ECJ) ruled that from 21 December 2012, insurance companies cannot charge people different amounts based on gender.
This new legislation will also affect pensions because there will be no longer be deemed a difference between men and women when it comes to calculating the annuity (income) that people will get. Women stand to lose most, because just now they pay less for things like life insurance, critical illness and car insurance. This is due to the fact that historically they are statistically less likely to claim. Men however now stand to lose out when buying an annuity or income protection as historically they have had a better deal in those areas.
