Are Insurance Companies Prejudice Against Men?

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.

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