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 circumstances.
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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