Ladies know the truth: lots of things are just more expensive for the fairer sex.
For starters, women who often are not as auto-savvy may find themselves shelling out more money to purchase or repair their car. They also pay more for clothes and haircuts when compared to men. And let's not even talk about the cost of health care (perhaps because men "never go to the doctor").
However, there is one product for which women generally pay less than men: a life insurance policy.
According to GoodFinancialCents.com, the potential for lower monthly premiums between the average male and the typical female is:
- $20 for a 10-year, $500,000 term life insurance policy at age 30
- $56 for a 30-year, $250,000 term life insurance policy at age 40
- $132 for a 20-year, $250,000 term life insurance policy at age 50
- $820 for a 20-year, $500,000 term life insurance policy at age 60
Women Live Longer Than Men
The main reason for this price disparity is the difference in life expectancies between men and women. According to data from the Organisation for Economic Co-operation and Development, the average life expectancy for an American woman is 81.2 years, which is about 6% longer than the figure of 76.4 years for men.
Because of this inequality in life expectancy, a woman is less likely to pass away at any particular point during the time period of her life insurance policy than her male counterpart. As a result, the premiums charged by her life insurer will be lower because of the reduced risk of the company having to pay out a hefty death benefit.