As you get older, you always seem to have more things you have to take care of.
Whether it’s the mortgage on your home, the loan on your car, or your kids’ college, these are financial burdens that you do not want to leave behind for your spouse to take care of alone.
I know my wife would find a way to kill me again if something happened to me and I didn’t take care of her and the kids!
Term life insurance is a great and affordable way to protect your loved ones in the event that you would pass away.
Term life is the cheapest type of life insurance policy available, and is only good for a certain “term”, such as 10, 20, or 30 years.
You can read more about why I purchased a $2.5 million 30 Term Policy.
If you have taken the first step and started comparing life insurance policies online for you and your spouse, you will notice that life insurance for women is cheaper. “Why is this?” you may ask.
Well to understand that question we first have to figure out how life insurance premiums are determined.
Here are the 9 Best Life Insurance Companies- According to Good Financial Cents, to find a quote for yourself!
Table of Contents
Life Insurance Rates of Males vs. Females
Life insurance is priced by mortality tables. These tables will show the average life expectancy for your gender and age. If you smoke, participate in dangerous activities, or have health problems will also affect your mortality rate.
Now that we know how life insurance premiums are determined, “Why the difference between men and women?” The biggest reason that life insurance costs more for men is that men have a shorter life expectancy compared to women.
In recent studies, they have shown that women outlive men by an average of five years. This is due to a big delay, or advantage that women have over men. Women develop problems with cardiovascular disease, such as heart attack or stroke, later in life than men do.
Women tend to develop these problems in their 70s and 80s, whereas men develop them in their 50s and 60s. This longer life expectancy helps to lower women’s life insurance premiums.
Why Does Life Insurance Cost More for Men?
Over history insurance companies have developed methods that show them if charging men and women the same how will that work with their risk?
The tables they use let them know that men should be charged a higher price because of things like life expectancy and how diseases and health issues arise in men faster than in women.
If you smoke, participate in dangerous activities, and deal with health issues it could lower the mortality rate. It is known that men live shorter lives than women and this plays a large part in the difference in rates. Recent studies have indicated a longer life for women by about 5 years.
Deciding on Who Gets the Most Coverage
Deciding how much life insurance you and your spouse need can also be a troubling question. Do I get more life insurance on myself since I make more money? Does my stay-at-home wife really need life insurance?
These can all be answered by asking yourself a few questions.
- What immediate financial expenses (e.g., debt repayment, funeral expenses) would your family face upon your death?
- How much of your salary is devoted to current expenses and future needs?
- How long would your dependents need support if you were to die tomorrow?
- How much money would you want to leave for special situations upon your death, such as your children’s education, gifts to charity, or an inheritance for your children?
If you are a stay-at-home mom, do not sell yourself short when deciding on an amount for life insurance. You may think that because your family is not dependent on your income you don’t need as much or any life insurance.
In a recent survey from Salary.com, stay-at-home moms should be charging $115,000 per year for their work. This value was derived from the duties they performed in the household, such as:
- Housekeeper
- Cook
- Laundry Machine Operator
- Chief Executive Officer (CEO)
- Computer Operator
- Janitor
- Psychologist
- Chauffeur
- Facilities Manager
- Day Care Teacher
Here are a few examples of life insurance quotes for men and women:
30-Year Term Life Rates Males vs. Females
| 30 Year Rates for Men | |||
|---|---|---|---|
| Age | $100,000 | $250,000 | $500,000 |
| 30 | $147 | $225 | $385 |
| 40 | $204 | $342 | $620 |
| 50 | $403 | $798 | $1,535 |
| 30 Year Policy Rates for Women | |||
|---|---|---|---|
| Age | $100,000 | $250,000 | $500,000 |
| 30 | $125 | $190 | $315 |
| 40 | $167 | $278 | $495 |
| 50 | $316 | $588 | $1,115 |
20-Year Term Life Quotes Males vs. Females
| 20 Year Rates for Men | |||
|---|---|---|---|
| Age | $100,000 | $250,000 | $500,000 |
| 30 | $109 | $155 | $245 |
| 40 | $132 | $208 | $355 |
| 50 | $269 | $504 | $930 |
| 60 | $638 | $1,308 | $2,555 |
| 20 Year Rates for Women | |||
|---|---|---|---|
| Age | $100,000 | $250,000 | $500,000 |
| 30 | $100 | $140 | $214 |
| 40 | $124 | $182 | $305 |
| 50 | $223 | $372 | $685 |
| 60 | $465 | $900 | $1,735 |
10-Year Term Life Insurance Males vs. Females
| 10 Year Policy | $100k Face Amount | $250k Face Amount | $500k Face Amount |
|---|---|---|---|
| Age | $100,000 | $250,000 | $500,000 |
| 30 | $83 | $115 | $170 |
| 40 | $98 | $140 | $220 |
| 50 | $166 | $280 | $500 |
| 60 | $329 | $702 | $1,345 |
| 10 Year Policy | $100k Face Amount | $250k Face Amount | $500k Face Amount |
|---|---|---|---|
| Age | $100,000 | $250,000 | $500,000 |
| 30 | $80 | $105 | $150 |
| 40 | $93 | $130 | $200 |
| 50 | $149 | $245 | $430 |
| 60 | $275 | $492 | $920 |
Bottom Line – Term Life Insurance: Women vs. Men Rates
Life insurance rates vary significantly between men and women due to differences in life expectancy and health risks.
Mortality tables, which assess average life expectancies, show that women generally outlive men by about five years, primarily because they develop cardiovascular issues later in life.
This longevity advantage results in lower life insurance premiums for women.
When determining coverage, it’s essential to consider both immediate financial burdens and long-term needs.
While income can guide decisions, stay-at-home parents, particularly moms, should not underestimate their financial value, as their household contributions equate to significant annual salaries.
Any advice on getting lower premiums for variable term given this post?
Male or female, Term Life can really help out your family in tough times.
Just curious what you think is the better option–stacking two 20 year policies (meaning, buy one for say $500k and 20 years and then 10 years later buying another for $500k for 20 years) essentially giving 30 years coverage, or buying one 30 year policy?
@ Melissa For simplicity purposes, I would suggest to buy one 30 year term policy.
It makes sense but stinks as a male. I take it the rate examples you used are yearly rates?
@ Lance
Yes, should have made that clearer. The premiums do reflect annual premium amounts on the various term policies.