Thread by @finshots

Why do women pay less for term life #insurance as compared to men?

Thread.👇(1/n)

It's true. Women get term insurance at cheaper rates than men. And no, this isn’t insurers being sexist.

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.

More precisely, they consider the gender-wise life expectancy, mortality, and morbidity rates.

Here’s a brief rundown of the trio.👇

1.) The latest stats say women live approximately 3 years more than men.

For the term insurer, longer life means a greater chance of outliving the policy.

2.) When it comes to morbidity (the state of having an illness), trends show that diseases like heart attacks affect men at an earlier age than women. This means women are less susceptible to illness and consequent death.

3.) Lastly, according to the latest data available at the World Bank, the mortality rate for Indian women is 145 deaths per 1,000. This is much below the 201 figure for men.

On all three fronts, the same logic prevails: since women are at a lower risk of death, there will be a lower number of claims from female policyholders.

Hence, term life insurers price female policies cheaper. Oh, also...

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