Are Insurance Companies Prejudice Against Men?

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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.

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