Engage Mutual will move to gender neutral pricing on its over 50s guaranteed life cover from 4 December 2012.
In addition to implementing the change ahead of the EU Gender Directive coming into force, the mutual has committed to honouring any pipeline business up to close of business on 21 December, for quotes sent before 27 November.1
The EU Gender Directive states that from December 21 2012, gender can no longer be taken into account when pricing new insurance policies. With regards to Engage Mutual’s guaranteed life cover, where age and smoker factors are equal, men and women will pay the same premium for the same level of cover.
Marketing director at Engage Mutual, Karl Elliott, commented:
“We appreciate that in the current economic climate, consumers are feeling buffeted on a number of financial fronts. Our approach has been determined with fairness in mind and should ensure we can continue to meet the need for quality life cover at a reasonable price.”
Engage Mutual’s guaranteed life cover, sold as Guaranteed 50 Plus Life Cover via intermediaries and direct as Over 50s Life Cover Plus, is currently the only product of its kind to offer customers the flexibility to claim a cash lump sum on diagnosis of a serious or terminal illness at no extra cost2 – one of a number of valuable free benefits offered.
By introducing gender neutral rates ahead of the EU Directive deadline, the mutual is providing a notice period to allow customers and their advisers to consider their protection needs and act prior to the gender pricing change where it is beneficial to do so. The implementation date provides more certainty that any gender priced applications for life cover can be completed ahead of the EU deadline.
Karl Elliott continued:
“Regardless of whether they will experience an increase or decrease in premiums, individuals should ensure that they and their family have the appropriate cover in place based on their needs today.”