Term life insurance premiums are lower for women than for men. While this probably comes as no surprise to many, we do periodically get questions from consumers about this. The simple answer is because of increased mortality in men. In other words, women live longer.
According to data from the U.S. Census Bureau, the projected life expectancy of a female born in 2010 is 81.4 years, while that of a male is 75.6. Although the gap has narrowed over the past twenty years or so, this still represents a difference of nearly five years.
The following chart represents the premium difference by gender for a typical 10-yr term life insurance policy with a $750,000 coverage amount.
While the difference in premium is rather small at younger ages (e.g. about 7 percent at age 25), it is significantly higher at older ages. For example, the difference at age 65 is a staggering 80 percent!