Photo by Priscilla Du Preez on Unsplash
Photo by Priscilla Du Preez on Unsplash

Why do women pay less for term life insurance?


Women pay less for term insurance than men! Yes, you read right. It’s not a typo, nor is it a myth – it’s a fact. And, believe it or not, this has nothing to do with sexism or discrimination. In fact, there’s a perfectly good reason behind it, one that will surprise you. Life insurers have a simple mission – to assess the risk of insuring the policyholder. And, as it turns out, gender is one of the many factors that they take into consideration when pricing premiums. So, how does this work, you may ask? How can gender affect life insurance rates? Don’t worry; we’ve got you covered. 

So, why exactly is it happening?

Well, life insurers’ goal is simple: to gauge the risk of insuring the potential policyholder. 

This basically means how likely you are to die during the policy term and exact a claim.

Insurers inspect a host of factors to determine risk before pricing the premiums. One such factor is gender. There are other factors that decide the total premium you pay- riders/ add-ons in term plan, age of policyholder, policy duration etc.

Gender plays a critical role in life insurance policies, with insurers taking into account various factors such as gender-wise life expectancy, morbidity, and mortality rates. Here’s a closer look at how each factor impacts policy rates.

1.) Women’s Longer Life Expectancy Impacts Policy Rates

Women tend to live about three years longer than men, and this impacts policy rates. Insurers must consider the possibility that a woman may outlive the policy, leading to a greater risk for the insurer.

2.) Women’s Lower Morbidity Rates Affect Life Insurance Premiums

When it comes to morbidity rates, men tend to develop illnesses like heart disease at an earlier age than women. Women are, therefore, less susceptible to such diseases and have a lower chance of falling seriously ill or dying as a result.

3.) Lower Mortality Rates for Women Translate to Lower Claims

Mortality rates for women are significantly lower than those for men, with the latest data indicating a mortality rate of 143 deaths per 1,000 for Indian women compared to 199 deaths per 1,000 for men. This lower risk of death translates into lower claims from female policyholders.


In conclusion, we have explored the reasons behind the surprising fact that women pay less for life insurance than men. By taking a closer look at the factors that insurers use to assess risk, we have seen how gender plays a role in determining policy rates. Women, on average, live longer than men and are therefore considered lower risk, leading to lower premiums. It’s a fascinating topic that sheds light on the intricate workings of the life insurance industry.

If you’re in the market for term insurance, we invite you to talk to us today. At Ditto, we believe in providing our clients with honest and transparent advice, free of spam and pressure. We understand that making the right decision for you and your loved ones is crucial, and we’re here to help guide you through the process. 


How do insurers determine premiums?

Insurers determine premiums based on the risk involved in insuring the policyholder. They consider various factors like age, health, occupation, and gender to assess the likelihood of a claim.

Can men do anything to qualify for lower life insurance rates?

No, men cannot do anything to qualify for lower life insurance rates based on their gender. Insurance rates are determined based on a variety of factors, and gender is just one of them. Men can, however, improve their overall health and lower their risk factors for certain medical conditions to potentially qualify for lower rates.

Do women receive lower life insurance rates across all age groups?

Yes, women typically receive lower life insurance rates across all age groups due to various factors, including their longer life expectancy, lower mortality rates, and lower morbidity rates compared to men. However, other factors such as health, occupation, and lifestyle habits can also affect life insurance rates.

What other factors do life insurers consider when setting policy rates?

Life insurers consider several factors when setting policy rates, including age, health, occupation, lifestyle habits, family history, and coverage amount. They also take into account medical exams and underwriting assessments to determine the overall risk profile of the policyholder. These factors help the insurer assess the likelihood of the policyholder making a claim and determine the appropriate premium to charge for the policy.