Women are bearing the financial brunt of the Gender Directive…….

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Women are bearing the financial brunt of the Gender Directive…….

Analysis conducted by Caledonian Life has revealed that the last 5 years have shown a drop in the cost of premiums in Life and Mortgage Protection cover for men across the board. However, the cost of premiums in Life Life and Mortgage Protection has become more expensive for women. This is due to the impact of the EU Gender Directive.

This EU Gender Directive states “the use of sex as a factor in the calculation of premiums and benefits for the purposes of insurance and related financial services shall not result in differences in individuals’ premiums and benefits.” In other words, premiums and benefits should not be different between two individuals for the same insurance policy, solely because one of the individuals is male and the other is female. This had been one of the key bases of pricing Life cover in the past.

According to Rachel Purcell of Caledonian Life, “In 2012, we looked at a 10 year analysis of Life Cover and Mortgage Protection premiums which revealed decreases  across the board  of up to €40,000 over the course of a policy. Obviously this was good news for consumers as savings of any sort are widely welcomed.

However, In December 2012, the Gender Directive came into force. We decided now was a good time to do another historical comparative analysis – this time just for the last 5 years, to see what type of impact the Gender Directive has had on Life Cover policy rates.

The good news for males is that in many cases premiums have decreased – quite considerably. However, in the case of females – smokers in particular, the Gender Directive has meant that premiums have largely increased from anywhere between 1% and 25%!”

Term Assurance

 Male Non-smokerMale SmokerFemale Non-smokerFemale Smoker
AgeTermJan 09Feb 14DifJan 09Feb 14DifJan 09Feb 14DifJan 09Feb 14Diff


Mortgage Protection

 Male Non-smokerMale SmokerFemale Non-smokerFemale Smoker
AgeTermJan 09Feb 14DifJan 09Feb 14DifJan 09Feb 14DifJan 09Feb 14Diff

Premiums based on Term Assurance policy with Life Cover of €300,000. Figures include Government Levy (currently 1%)Caledonian Life Feb 2014 premiums are based on pricematching and electronic submission. (Source: Caledonian Life and Best Advice. Comparison valid as at 18/02/2014).


So it would clearly appear that the Gender Directive has had the impact that was expected when it was instituted. Both male and females now pay the same price for Life Cover. Unfortunately for females, that has meant an increase in what they would have had to pay for the same policy in the past, up to 25% more in some cases.

So this is a mixed news story for consumers -our analysis highlights the differences in the pricing for male and female policies over the years and reveals that males have definitely fared better in recent years with marked reductions.

Rachel went on to day, “However, the public should remember that Life cover is still extremely affordable, and much cheaper than they may expect. In fact, €240,000 worth of Life Cover is available from as little as €15.15 per month for 20 years, for a 30 year old non-smoker. That’s under 4 euros a week – less than what some people spend on coffee every day!

Many companies also have special offers available now, which offer additional price discounts. Your local

Financial Broker will be able to help you find the best product at the best price to meet your individual needs.”





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