Are Insurance Companies Prejudice Against Men?

FirefighterbyKenMist
Yes, insurance companies
are biased against men.
Photo by Ken Mist.

Considering most life insurance companies are run by males, it wouldn't make sense that these companies have a bias against men.

Still, the reality is that women live longer than men. A new study out of Japan reveals that this may be because a woman's immune system ages more slowly than a man's, and insurance companies have been factoring women's longevity into their premium schedules for years.

The cost difference can be significant. Case in point: a 30-year-old woman applying for $1 million of term 10 coverage at standard non-smoker rates would pay $290 a year. A man of the same age applying for the same plan would pay $480 a year. This is a difference of over 65%.

The percentage difference is much lower in permanent policies. For example, $100,000 of non-participating whole life 20-pay coverage (meaning a policy that's paid up in 20 years and provides coverage for life) is available at a cost of $841 per year for a 30-year-old, female non-smoker. The same plan for the same amount for a 30-year-old, male non-smoker is $942 a year. A difference of only 12%.

It's not all bad news for men looking for insurance. In most instances, they actually pay less than women when looking for disability insurance. The reason is that men have a lower morbidity rate than women, according to a study from Princeton University.

Canada's Lowest
Life Insurance Rates

Amount:
Sex: Male Female
Smoker: Yes No
Name:
E-Mail:
Telephone:
Year of birth:

Get our NEWLY updated
Insiders Guide To Buying
Life Insurance FREE

with each quote request.

life insurance testimonials
I work with LSM Insurance on the paramedical side of the industry. Quality Underwriting Services set up the insurance medicals. The LSM team are very easy to work with as they always prepare their clients for the medical procedure prior to our health team going out. (1 of 83)

Leave a Reply

 

3173 Bathurst Street, Toronto, ON M6A 2B1
Head Office: 2900 John Street Suite #302 Markham, L3R 5G3
Office 1-866-899-4849, 905.248.4849 Fax 905.300.4848


© LSM Insurance Services Ltd. 1998-2014 | All Materials




Are Life Insurance Companies Exploiting Seniors?

Close