While we have come a long way, there are still far too many differences and discriminations of gender in our society. This is not one-sided. Both females and males as well as those who identify in other ways, have felt the both the positive and negative effects. And life insurance is no exclusion.
Life insurance is one of those things that still groups people together based on their age and gender, and it can even have an effect on your life insurance rates. But it’s not discrimination here, it’s based on scientifically-proven facts.
Here’s how and why your life insurance rates vary based your gender:
Females Versus Males:
Luckily for the ladies, life insurance premium rates are typically lower. If comparing a male and a female both age 30 with pristine health records, the female’s life insurance premiums will be lower than the males. This is because women have a longer life expectancy.
According to the World Health Organization, a study completed in 2014 showed that a female born in 2012 can expect to live until the age of 73, while a male is only expected to live until the age of 68. The study was done unanimously across the world in different countries, and across the board women proved to live longer lives than men.
This difference in life expectancy plays a large role in deciding life insurance rates, because with each year that a person lives with their life insurance policy, is another year of paying their premiums. If they die before the insurance carrier expects, the insurance company loses money. With a shorter life expectancy, males pay more to pay off their policy in a shorter amount of time. Hence why gender is such an important factor.
While it will likely take a while for the insurance industry to catch up with the times, they have made recent advantages to work to insure the transgender community. However, these folks will likely experience higher rates in life insurance. This is not as any act of discrimination, but simply based off the increase of risk with people who have undergone surgeries to change their appearance or who take special hormones. The increase of risk tends to raise life insurance rates, and some companies have yet to find a way to offer this insurance. But don’t worry, companies like MetLife work to get you covered and provide you with the best possible rates. There are still some options for you to get insurance, so don’t get discouraged if some companies cannot offer you a policy with good premium rates.
Gender may be a big factor that goes into deciding your rates, but it is not the most important factor. Other important factors include age and health history. If you purchase insurance at a younger age, and work to stay in shape and be healthy, you will be able to get the best possible premium rates for your insurance policy. To get the best rates for your life insurance policy, talk to your agent, and shop around with different life insurance carriers to see which is the best fit for you.
To learn more about other factors that can bump up your life insurance rates, and how to lower them, check out 'Why Your Life Insurance Rates Are So High, And What You Can Do About It.’