Does Life Insurance Cost the Same Amount for Men and Women?

If you have people in your life who rely on you financially (such as a spouse or children), then you should strongly consider putting a life insurance policy in place. Without life insurance, your dependents might struggle to cover their living costs in the event of your passing.

Generally speaking, term life insurance is a far more affordable option than whole life insurance. With the former, you're only covered for a preset period of time and your policy does not accumulate a cash value. With the latter, your policy does accumulate a cash value, and you get coverage for the rest of your life. But the cost of whole life insurance can be so prohibitively expensive that despite those extra benefits, a whole life policy just isn't worth it.

You may be wondering how much you should expect to spend on term life insurance. And the answer is that it depends on a host of different factors, like your age at the time of your application and the state of your health. But your gender could also play a role in determining how much life insurance ends up costing you.

The one area where women seem to have an advantage

Many people are familiar with the gender pay gap, which has women earning less money than their similarly qualified male counterparts. That clearly puts women at a financial disadvantage.

But one area where women seem to benefit financially is life insurance. Specifically, it tends to cost women less money to buy life insurance than men. And the reason is actually pretty simple.

Women tend to live longer than men. Because of that, women who buy term life insurance are more likely to outlive their policies, resulting in a situation where their insurance companies don't have to pay out any benefits. And that's what insurance companies want.

How much of a difference does gender make when buying life insurance?

Dave Ramsey says that a $1 million life insurance policy for a 30-year-old male costs an average of $42 a month for a 10-year term and $54 a month for a 20-year term. By contrast, a $1 million life insurance policy for a 30-year-old female costs an average of $28.50 a month for a 10-year term and $43 a month for a 20-year term.

But this doesn't mean that if you're a man, you're doomed to high life insurance premiums. There are steps you can take to minimize those.

First, apply for coverage at a relatively young age. Secondly, work on making improvements to your health before undergoing a medical exam for life insurance. If you smoke, try your best to quit. If you're considered medically overweight, try to shed some pounds by making changes to your diet and exercise routine.

The cost of your life insurance premiums will hinge on how much risk your insurer thinks it's taking on. If you present yourself as a less risky candidate, you'll generally be rewarded in the form of lower premiums. It's that simple.