Is Life Insurance Cheaper For Women
As a life insurance broker in Silicon Valley, I’m frequently asked the question, “Is life insurance cheaper for women?”
As you may have guessed, my answer is a bit more involved than a simple thumbs up or thumbs down.
Unsurprisingly, there are 1,001 reasons why it’s great to be a woman.
Aside from better bone health and a longer lifespan, do a Google search on the topic and you’ll easily see what I mean.
And, better term life insurance rates are typically part of the deal.
However, that doesn’t mean you can throw on a Dolly Parton wig and call it a day.
Just as men and women face their own unique set of challenges in regard to gender, insurance companies do as well.
So really, is life insurance cheaper for women?
Understand How Premiums Are priced
Throughout history, insurance companies have established strategies to help determine levels of risk.
Meaning, they create tables which include elements such as life expectancy, disease, health issues, participating in dangerous activities, etc.
As it turns out, women carry less risk for life-threatening diseases and are generally healthier than men.
Plus, women don’t participate in as many high-risk activities—skydiving, flying a plane, hang gliding, or scuba diving to name a few.
What this means is that women, in general, are less risky to insure.
As a result, women are more often granted cheaper life insurance premiums.
Keep in mind, being female simply doesn’t entitle you to the very best life insurance rates available.
Though it does give you a one-up. It’s still up to you to how you live your life.
For example, unhealthy habits such as smoking or even taking up the dangerous hobby of skydiving are going to influence an insurance company’s risk tables.
All of these factors impact the overall cost of life insurance for women.
But why is life insurance cheaper for women even when most men never jump from a soaring airplane?
Longer Life Expectancy Makes All the Difference
Perhaps you’ve learned about life expectancy in a difficult way by experiencing your grandfather or even your father passing away.
This order of events—men passing away before the women—is usually the way of life.
Generally speaking, women outlive men by an average of five years.
As a result, life insurance is typically less expensive for women because they often outlive the policy.
So, when answering the “Is life insurance cheaper for women?” question, I often mentioned this point first.
Of course, it’s possible for men to live longer than women.
But remember, life insurance companies determine premiums using a set of historical standards.
According to history, women simply live longer.
Male Vs. Female
If you’ve ever heard of John Gray’s bestseller Men Are from Mars, Women Are from Venus, you know how this book preached of the vast differences between the genders.
Although the gap is not so wide in the insurance industry, it certainly does exist.
For example, men are more likely to live away from their families—deployment, incarceration, divorce, traveling career, etc.
In these scenarios, women are left as the primary caregiver and financial provider for the entire family.
Yet, in the past, men purchased bigger policies (which, of course, impacted the premium) because they were the breadwinners of the family.
But let’s be real, even though the pendulum is swinging more toward gender equality nowadays, if you’re a single mom, for example, then you are likely going to have most of the financial and logistical responsibility.
Additionally, women serve as caregivers to their children as well as to their aging loved ones.
Basically, today’s women need significant life insurance policies because of the large financial load they carry.
The best part? The “table of risk” isn’t stacked against women like it’s stacked against the men.
The big question is really about how much life insurance to purchase.
How to Decide the Right Amount of Coverage
Firstly, life insurance helps to safeguard your family’s financial future.
And it doesn’t make sense for everybody.
Obviously, if you have enough assets to cover your final expenses and you have no dependents, buying life insurance won’t be on your to-do list.
However, not many people are in that boat.
And since you’re reading this, you’re probably not either.
So, here are a few tips on how to determine how much life insurance coverage you need.
It’s important to look at what would take a hit if you weren’t there, such as:
- Income replacement
- Family insurance (Do you carry insurance for your kids or spouse?)
- Debt repayment
- Household duties
Keep in mind that women notoriously undervalue their family contributions.
Although it’s not anything new, the “invisible work” that women do has been valued at well over $100,000.
Yet, women aren’t compensated for this figure…until they talk to a life insurance broker.
Take the Next Step
Knowing your own value and getting the life insurance policy that you deserve is a big step in helping to secure your family’s financial future.
For single moms (and all single parents alike), this decision is vital. For that reason, I feature an up-to-date Complete Life Insurance Guide for Parents.
Here at CB Acker Associates, we want to help you take care of your family.
If you’re ready to find a policy that fits your needs and your budget, we can help!
There’s no reason to pay higher premiums that you need to!
With access to all the top rated life insurance companies, we work extra hard to get you the best life insurance rates possible.
You can even compare rates and benefits from over 40 providers with no obligation to buy here. Plus, it’s fast—under 60 seconds kind of fast.