Women Vs Men - Comparison of Life Insurance Benefits

In the contemporary world, the scenario is changing slowly, with women taking center stage to provide for their family's needs. Given the life-related responsibilities they shoulder; it is crucial that they buy life insurance for themselves. They can also benefit from the differences in term insurance rates for men and women.

Look at the male vs female life insurance rates and you will realize that most life insurance companies offer life insurance plans to women at lower rates.

At Max Life Insurance, we also do our part in strengthening women's lives in India with our term insurance plans.

For a 30-year old non-smoker woman, choosing Max Life Smart Term Plan (A Non Linked Non Participating Individual Pure Risk Premium Life Insurance Plan, UIN: 104N113V04) for a life cover of Rs. 50 Lakhs till the age of 70 years with a policy period of 40 years would cost around Rs. 6018 annually inclusive of GST as per Max Life insurance premium calculator. The life insurance rates for men (30-year old non-smoker male) for the same plan will cost Rs. 6962.

Let us discuss this trend of the difference between term insurance rates for men and women in detail.

Example A simple example can make you understand why the term insurance rates for men and women are different. When Sachin and Divya, both aged 25 and are non-smokers, asked about the rates of term insurance for women and men for a policy cover for a 40 years tenure, they get to know the differences.

The strange thing is that these differences between term insurance rates for men and women were only based on gender. As a woman, Divya is told to pay 13-15% less premium than Sachin, despite the fact that they both follow almost similar lifestyles and are of the same age.

You can better understand these differences between life insurance rates for men and women in terms of 'gender rating'. This rating refers to the practice of charging different life insurance rates for women and men.

In practice, most insurance companies in India offer a risk-based pricing structure for their insurance plans. They assess the policyholder based on risks like accident, mortality, and morbidity to arrive at this pricing. In reality, gender is also a parameter that affects these risks. The gender differences do affect the likelihood of an individual needing to file a claim for the purchased life insurance policy.

As a result, the term insurance rates for men and women tend to differ because of the related risk factor. In other words, the life insurance rates for women and men indicate the claim cost differences.

One of the fundamental reasons behind the differences between term insurance rates for men and women is their average life expectancy. As per research[1], women are considered life-expectancy champions, living longer than men by five years on an average.

At the insurer's end, this is a crucial difference, as they will likely to benefit more by offering life insurance to women. The medical side also says that the term insurance rates for men and women vary because women are less likely to suffer from chronic diseases. They are less prone to different heart conditions from lifestyle habits like drinking or smoking in excess. Men consume high quantities of tobacco, alcohol, and psychoactive substances, drive less safely, and eat less than women do, which results in high risks of cardiovascular diseases, lung cancer, liver cirrhosis, and accident fatalities.

Moreover, some insurers offer women-centric plans and additional benefits like maternity insurance, keeping that male vs female life insurance rates in mind. Women can also add various life insurance riders to their plans for extended insurance benefits.

If you want to dig deeper into the differences between term insurance rates for women and men, it would be best to ask a renowned insurer. Make sure you clarify such doubts before you buy a term plan that fits your needs.

Women in India are coming up to shoulder responsibilities for their family, just like men. The more dependents you, as a woman, have, the more crucial it is for you to build a shield to protect their financial future with a suitable term insurance plan.

It is even more important for those women who are the only breadwinner in their families. Any untoward incident to their life may cause considerable financial strain for the family behind. Hence, it will be good for you to get your life covered under a term plan.

If you are young, you can easily get the benefits of differences between term insurance rates for men and women. Here are some other reasons why women should buy term insurance in life: