The past two pandemic-hit years have been a wake-up call for many of us especially when it comes to realising the importance of life insurance. The fear of leaving your family without any financial support in case of your untimely demise in itself should be enough to make you realise the importance of having life insurance.?
And when it comes to buying it, we are often advised to compare the insurance premiums of various insurance companies as each of them tends to offer different premiums after factoring in parameters such as your age, policy term, occupation, family health history, lifestyle, and even your gender.?
Yes, you read that right. Life insurance premiums usually tend to differ for males and females, with the latter getting lower insurance premiums in comparison to men.
But why so?
This is because the life expectancy of women is higher than men. If you, as a male, are of the same age and want the same policy amount and tenure besides other factors, your life insurance premium is likely to be higher than that of a woman.
The longer you live, the better it is for life insurance companies as they keep getting the premium and do not have to shell out the insurance amount. So, the presence of a longer life expectancy brings down the premium for women in the case of life insurance.
Let's take an example for this life insurance premium difference better.?
For a 30-year-old male wanting a Rs 50 lakh term life insurance till the age of 60 years, i.e.30 years of the policy term, annual income of Rs 15 lakh, non-smoker, the annual premium is likely to be around Rs 11,000. Whereas for similar requirements and with a similar lifestyle, a woman is likely to have an insurance premium of around Rs 9,500.?
While the insurance premium and difference between the genders are likely to be different for different insurance companies, the insurance premium will often turn out to be lesser for women when compared to men.
Earlier this year, FM Sitharaman spoke about the Economic Survey 2021-22 in Parliament, stating that as per the estimate, females are expected to live longer (70.7 years) compared to males (68.2 years).?
Even as per Statista data for 2022, around the world the average life expectancy for women is higher than for men. Worldwide, the average life expectancy is 75 years for females vs 70 years for males.
Also keep in mind that the healthier your lifestyle is, and the sooner you take the life insurance, the cheaper the life insurance premium will turn out to be. So buy it as soon as you can if you haven't already.
Also Read:?How To Be Financially Prepared For A Recession
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