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Why women could pay less for life cover

SmartInsure

Since South African women have a higher life expectancy than their male counterparts, insurance providers offer them lower premiums.

Life insurance providers consider numerous factors when calculating a client’s premiums. They need to assess the risk of each individual and work out whether they ought to pay a lower or higher premium.

If they are considered high-risk, they will pay a higher premium, and if they are considered low-risk, they will pay a lower premium.

Lower premiums for women

Since South African women have a higher life expectancy than their male counterparts, insurance providers offer them lower premiums.

This is not intended as discrimination against men. Instead it is based on statistical data they have gathered from previous clients. Their decision to offer women lower premiums needs to be actuarially justified – in other words, it must be based on numbers and figures.

However, this does not mean that women will receive lower premiums for all financial products. In some cases, such as with income protection for a disability, women are statistically considered high-risk and will, therefore, have higher premiums than men.

Which other factors impact premiums?

Gender is one of many factors taken into account when determining life cover premiums.

Insurance providers will scrutinize the background and personal details of each client and make an assessment based on their client as a whole. If a woman lives a more risk-averse lifestyle, she may still receive a higher premium than her male counterpart, who lives a more risky lifestyle.

The following factors also have an impact on life cover premiums:

  • Age - The younger you are when you take out life cover, the lower your premiums will be. It’s, therefore, possible that a woman who takes out life cover at 54 will have a higher premium than a man who takes out life cover at 26.  
  • Smoking - If a client smokes, they are immediately considered high-risk and their premiums will be higher. Although women receive a slightly lower premium, clients who smoke will have to pay extra for their habit regardless of gender.
  • Lifestyle - Someone who spends time skydiving over weekends and annually tackles the peaks of Mount Everest will likely receive higher premiums because their life is placed on the line more than someone who spends their weekends gardening at home.

At SmartInsure, we understand that each client has a unique lifestyle. Get in touch with us on info@smart-insure.co.za to receive your personalised quotation. 

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