The first and most significant question that comes to the minds of millions of life insurance applicants (predominantly male) each year is why women pay less than men for life insurance. Most applicants, when first come across this fact, want to know the reason behind this.
Battle of the Sexes (Obviously women are winning)
Yes, the fact that women pay less for life insurance than men is true. The reason is due to statistics. In the United States, women live longer (81 years) in comparison to men (76 years). Though the gap is quite narrow and coming closer very fast, women still live longer than men do - at least statistically.
There are many theories behind as to why this longevity gap exists. However, there is not a single certain one. Few explanations like environmental factors, men are more addicted to smoking and consuming high cholesterol food like red meat that lead to cardiovascular disease, and men are usually reluctant to show up before the doctor at the first symptom of a disease than women. However, the prime reason is yet to be defined.
What is the price difference?
Sample prices for a 45 year old male and female $300k 20 year term from same company
//
Sex
Preferred Plus
Preferred
Standard Plus
Standard
Female
$28
$33
$42
$50
Male
$34
$41
$55
$62
Insurance is all about numbers and life insurance is no exception. A person with good health is obviously going to pay less for life insurance than someone with poor health. Similarly, a younger person will pay much less than an old fellow. Hence, as women live longer, they pay less than men.
However, in health insurance the opposite is true as statistically women go to the doctors more often than men and consequently pay more for coverage. So, it’s all about numbers!
Conclusion
Now as you know why and how things work in the life insurance sector, if you want to pay less and save some during the course of the coverage, the best time for both men and women to purchase life insurance is while in good health.
