Term Life Insurance Rates for Women vs. Men

Joseph Meyer
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Life Insurance Rates of Males vs. Females

You know that purchasing term life insurance is an important step if you’re trying to protect your family financially should something happen to you. But you may wonder how much term life insurance costs- would a large life insurance policy be more expensive than a small one? How much is the average cost for the policy and why should some people pay more than others? The two most important factors that determine how much term life insurance cost include your age and health, but to find out exactly how much your life insurance will cost, the underwriter will consider other factors to determine your life expectancy.

There are no two individuals with exactly the same medical histories. That’s why life insurance rates vary for both sexes. Insurance companies like to select younger, healthier individuals to insure for longer terms. But because these individuals are less inclined to file claims, these types of individuals generally pay more for their insurance policies than would a person in poor health. However, some people aren’t eligible for insurance coverage due to their poor health and may need to consider a term-to-term option instead.

But having term life insurance can make a difference if something unexpected happens. If your spouse would be affected financially by your passing, he or she may be eligible for life insurance through your policy. And if your family would have a hard time making ends meet, they could use the money to help pay for day-to-day expenses.

Why Does Life Insurance Cost More For Men?

A large number of people believe that life insurance rates for men are higher than life insurance rates for women. This is because men have a significantly higher risk of dying prematurely than women. Men tend to be risk-takers, work in high-risk jobs, and are more likely to engage in dangerous sports such as auto racing, where fatalities are common. Women, on the other hand, are more likely to make healthy lifestyle choices such as using seat belts, opting for low-fat diets, consulting with doctors for regular check-ups, etc.

These facts make men more susceptible to unexpected death in the short-term, so the insurance companies charge men higher rates to cover the risk associated with it.

Having said that, it doesn’t mean that life insurance rates for women are all low. If you have a pre-existing condition, your health is compromised, or your age is close to the average life expectancy, you can be expected to pay more. All insurance policies have underwriting criteria, so it makes sense that you pay the higher rates if you fall under one of these categories.

Deciding on Who Gets the Most Coverage

When you’re looking to purchase life insurance, there are a lot of factors that you need to take into consideration. The type of policy, coverage amounts, term lengths … the list goes on and on.

Just about every decision you make will have a major impact to the overall cost and type of life insurance you end up selecting. And, if you’re a woman, this can be a tough decision. You could do all of your homework and put together a list of potential policies, but you’re still leaving out some very important information. Like what?

Simple – who is going to be named as the beneficiary of the policy.

Here’s some quick information about how term life insurance rates for women and men compare.

Men make up the overwhelming majority of the community of life insurance policyholders. Out of every 100 people who have a life insurance policy, only 21 are women. The other 79 are men.

Even though there are fewer women who have life insurance policies than men, they still outnumber men when it comes to policy value and the amount of money they earn. Women have about half of the policy amounts that men have and even fewer accounts.

30 Year Term Life Rates Males vs. Females

20 Year Term Life Quotes Males vs. Females

Term life insurance premiums are affected by several factors such as age, health, and tobacco use. For purposes of providing a baseline average in this article, we’re only looking at sex as a potential factor.

According to the most recent 2017 NAIC Annual Statement Experience by Company report, women are slightly more expensive to insure than men for a 20-year level term policy (1% vs. 0.7%).

This may be surprising for some people. Since women tend to have longer life expectancies than men, many assume that they would cost more to insure. But the opposite is true for two reasons. First, women tend to be in worse health than men. Second, men tend to have higher incomes than women. Higher income levels can cause policyholders to cost more to insure.

So, while it’s true that women tend to be more expensive to insure than men for most policies bought by individuals to insure their life, there are some policies where it is the other way around. For example, a separate report by the NAIC revealed that for group term life insurance purchased by employers, men were more expensive to insure than women (2.22% vs. 1.76%). This is likely due to higher incomes and the fact that men are more likely to have dangerous occupations.

10 Year Term Life Insurance Males vs. Females

A standard life insurance policy covers the client for an amount equivalent to a set number of years. This is usually known as a term life insurance policy. For example term life insurance 5 year coverage gives you protection for a period of 5 years, term life insurance 10 year coverage gives you protection for a period of 10 years and so on. The length of coverage is also sometimes known as the term and can usually be renewed based on the clients continued medical condition.

Term life insurance is usually purchased at a younger age when compared to whole life insurance. This is due to the fact that there is a lower mortality rate in younger groups. This means that your chance of dying in the next 20 or so years is much lower than after the age of 50. The standard returns on whole life policies for men are around 700% which simply means that you will have to pay the premium for the whole life of the policy in order to receive the benefit.

However this does not represent the return that you would get from the cover. This is due to the fact that insurance companies invest this money and there are elements such as inflation included and also the cost of running the policies.

Women pay more for term life insurance than men as they have a higher mortality rate for life insurance up until the age of 60.