Insurance: Why is women's insurance cheaper than men's, what are the reasons for this and how much is the difference?

If you've recently considered life insurance, you've probably noticed that premium rates for women are lower than for men. Insurance companies are offering cheaper plans to attract women. But have you ever wondered why this happens? Let's understand it more simply.

Why do women get cheaper insurance?
On average, women live about five years longer than men. This means lower risk for the insurance company. If a person lives longer, the company doesn't have to pay claims for that person as often, which translates into profit. This is why insurance companies charge slightly lower premiums for women.

Also, women are generally less likely than men to smoke, drink, or engage in risky lifestyles. Therefore, they develop heart disease and other serious illnesses later, which is another positive point for insurance companies.

Consider an example: Jitendra and Pooja, both 30 years old and non-smokers. When both men purchase a 30-year term insurance policy from the same insurance company, Vishal has to pay approximately 14% more premium than Revathi simply because he is a man.

Similarly, if Rahul (25 years old) and Aarti (25 years old) are both non-smokers and want a 40-year policy, Divya has to pay approximately 13-15% less premium than Sachin.

Why do companies do this?
Insurance companies determine premiums based on risk-based pricing. That is, a riskier person has to pay a higher premium. Men are more prone to accidents, heart disease, liver problems, and smoking-related diseases. This is why insurance companies believe that men have a slightly higher chance of a claim.

Tax Benefits Equal for Both
Whether men or women are eligible for tax deductions on insurance premiums. Under Section 80C of the Income Tax Act, you can claim up to ₹1.5 lakh annually. However, these benefits may change with changes in tax laws.

Why should women buy life insurance?
In today's world, women are not only managing the home but also shouldering the financial responsibility of the family. Therefore, when it comes to family security, life insurance is as important for them as it is for men.

If a woman has family members dependent on her income, term insurance can secure her family's future. Additionally, many insurance companies are now offering special plans for women, such as maternity benefits or critical illness cover.

Peace of Mind and Security
Life insurance isn't just a tax-saving or investment tool; it's a shield that provides peace of mind. It's reassuring to know that if something unexpected happens in the future, your family will be financially protected.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.