Life insurance rates are determined based on risk factors associated with the insured individual, and that generally grants women lower life insurance rates than men. Even so, the life insurance gender gap has been a long-standing issue — women are still much less likely to own life insurance today.
This gap is due to a variety of factors, but by and large many women are not aware how crucial it is for them to have adequate life insurance and how affordable it is for them to obtain. Educating women on the benefits of life insurance can encourage them to invest in the coverage they need, and one of their biggest benefits is access to lower rates.
Here are several reasons women often have lower life insurance rates than men:
Women Have a Longer Life Expectancy
Women generally have a longer life expectancy. According to data from the World Health Organization, the global life expectancy is around 76 years for women and 71 years for men. This makes covering women a lower risk for insurance companies and results in lower rates.
Women are Less Likely to Engage in Risky Behaviors
Insurance companies consider an individual’s lifestyle, and women are generally less likely to engage in risky behaviors that can lead to premature death. These behaviors, such as smoking or excessive alcohol consumption, increase the risk of health problems that lead to a shorter life expectancy, making men a higher risk for insurance companies and keeping rates lower for women.
Women are generally less likely to engage in risky behaviors that can lead to premature death.
Women Have Lower Rates of Certain Health Conditions
Insurance companies also consider an individual's medical history and current health when determining rates. Women have lower rates of certain health conditions that can lead to premature death, such as heart attacks and strokes. Since women are generally considered a lower risk for these conditions, their life insurance rates are often lower than men.
Women Tend to Work in Less Hazardous Jobs
An individual’s occupation and level of risk associated with it are also considered by insurance underwriters. Women tend to work in less hazardous jobs than men, which can reduce their risk of death due to workplace accidents or injuries. This makes women a lower risk for insurance companies, which lowers their rates.
Women tend to work in less hazardous jobs than men, which can reduce their risk of death due to workplace accidents or injuries.
It is important to note that, while women in general qualify for lower rates due to the factors listed above, all policy rates and coverage options vary based each person’s specific circ*mstances.
Life insurance rates are based on a wide variety of factors — however, with many women unaware than their rates are typically lower than men, it is important to highlight these differences so more women might be encouraged to get a policy, protect their families and close the gender gap in life insurance coverage.
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FAQs
Women typically live longer than men, so they often pay less than men for life insurance. Health or lifestyle risks could override any difference in premiums you'd see based on your gender. Gender-nonconforming applicants won't get higher rates based on gender identity, but must apply under one gender.
Why is life insurance cheaper for females? ›
Women typically live longer than men, so they often pay less than men for life insurance. Health or lifestyle risks could override any difference in premiums you'd see based on your gender. Gender-nonconforming applicants won't get higher rates based on gender identity, but must apply under one gender.
Why do women pay less for insurance than men? ›
On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger.
Why do men pay more for life insurance than women? ›
This means that, for term life insurance, women are more likely to outlive their policy. With men, there is a higher likelihood that a life insurance company will need to pay out the death benefit while the policy is active, so insurers generally charge men higher rates to compensate for this.
Why is insurance more expensive for men? ›
Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics. In general, car insurance companies charge male drivers more for coverage because they're more likely to get into accidents.
At what age do insurance rates go down for females? ›
For both men and women, the risk of being in an accident goes way down when they turn 25. However, many insurance companies reduce premiums for female drivers slightly earlier — from the ages of 21 to 25 Then as men hit 25, their premiums come back in line with the drop that female drivers have already experienced.
What is the gender rule in insurance? ›
GENDER RULE Definition & Legal Meaning
An insurance rule. Determines which parent's policy covers offspring. Typically, a father's policy is primary, providing dependent children coverage before considering any other potential coverage.
Do women get cheaper insurance? ›
When discussing tackling gender disparities in auto insurance, it's worth reiterating that six states — California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania — prohibit insurance companies from using a person's gender as a factor in determining their car insurance rate.
How does gender affect insurance rates? ›
These states have banned the use of gender to set car insurance premiums: California. Hawaii. Massachusetts.
Do women pay more for health insurance? ›
The result: a covert “pink tax,” a colloquial term that refers to the higher price women pay for the exact same product as men—be it disposable razors, laxatives, children's bike helmets, or health insurance. The heftier price tag is due in part to usage—women utilize health insurance 10% more than men, on average.
Teen and senior drivers typically pay the highest car insurance prices, while drivers in their 30s and 40s often pay the lowest rates.
Why does insurance go down when you get married? ›
Your personal relationship status does have an impact on what you pay for car insurance. Because married drivers are seen as more financially stable and safer drivers, they typically pay less for car insurance.
Why is insurance so expensive for the poor? ›
People in poverty pay more because they experience different risks. Some lower income individuals are considered to face higher or more costly risks than others. The market charges insurance premiums that are higher to reflect these increased risks. People in poverty think this is unfair.
Why is health insurance so much more expensive with a spouse? ›
A spousal surcharge is an additional fee on a medical plan if an employee's spouse is eligible for health insurance through their own employer on their own plan. This surcharge is a method used to help control employer costs.
Why is some life insurance cheaper than others? ›
Type of life insurance: There are several types of life insurance you can choose from. Term life insurance provides coverage for a set period of time. Because of this, rates are generally cheaper than other types of policies.
How much is life insurance for a 40 year old female? ›
The average monthly cost of term life insurance for a 40-year-old female nonsmoker is $82.71 for $1 million in coverage, according to a March 2023 study by USNews.com. A 40-year-old male nonsmoker can expect to pay $103.21 for the same coverage.
Is life insurance cheaper if you are married? ›
No, you don't get lower life insurance rates just because you're married, but joint life insurance policies can be cheaper than buying two separate life insurance policies.
