Women of the World... Take Cover!

1944: Cover Girl - Charles Vidor

Today it seems that some men have taken a backward step in time to an age when women had few freedoms and many suffered at the hands of abusive husbands. Sadly there is still some distance to travel for many men who are unable to move beyond thuggery. I'm not going to waste further time commenting about some rather idiotic and sadly revealing statements by a well known British actor, but instead focus on the fact that European legislation about gender equalisation (yes there really is such a thing) is due to impact British shores in a variety of ways. Ultimately this will mean that for various types of insurance women will be asked to pay rather more for cover. Rather than reflecting a lower statistical likelihood (which is how the actuarial system works) we are moving to a set of criteria that must not consider gender in relation to risk. This is a double edged sword and one that most people will not really appreciate until its too late. In short, time is now running out before the new legislation comes into effect, conveniently just before Christmas. This is certainly one gift that neither men or women will welcome.

Great financial planning will gradually reduce the need for insurance (as you build wealth and reduce debt) so it makes a lot of sense to review your progress. Some types of cover increase each year to keep the cover broadly in-line with inflation (which has now fallen to 3.4% here in the UK), some policies are re-priced every 10 years and then perhaps every 5 years - depending on the contract. So it is worth checking if you even need cover and if so whether you have the right type at the best price. This will all come from a proper financial plan, identifying what you need to achieve your goals and what risks you are happy to neglect and which you wish to insure.