Was James Brown right when he sang his famous line ‘this is a man’s world’?
Being a woman can actually be much more expensive than being a man for a variety of reasons.
Life insurance and health rates can be much more costly for women than they are for men for several reasons, such as average life-expectancy rates and the risk of mortality.
How much more does it really cost to be a woman?
Insurance Rates More Expensive for Women
Insurance companies are well known for using ‘gender rating’ to determine the prices of their rates and services.
While these practices have been challenged with legislation, such as the case of the Affordable Care Rate, insurance rates for men and women have a long way to go before they are considered equal.
In the eyes of insurance companies, when they determine their rates, women are considered to be riskier than their male counterparts.
Women are able to have children, which means more visits to the doctor and more health risks.
When it comes to life expectancy, women are also more likely to live longer than men.
The Difference Between Car Insurance and Health Insurance
Statistically, young men are expected to receive a much higher cost on their car insurance rates than women.
However, when it comes to health insurance and life insurance, is it fair for women to have to pay more than men?
Women have to pay much higher premiums over their lifetime on their insurance and medical expenses.
The rates average as much as 1/3 higher than men in certain circumstances.
Access to medical care in a life-threatening situation and access to auto insurance are two very separate concerns.
Unlike life insurance where mortality risk is priced based on life expectancy, Disability Insurance is priced based on morbidity risk, or the likelihood of developing chronic illness. Therefore, there’s often a 40% increase in costs for females.
A Long Way to Go
While ‘gender rating’ is now illegal, there are still many challenges that stand between women and having equal insurance rates to men.
One of the greatest challenges is the difference in incomes between men and women.
Women are not as likely to have access to insurance as men are because they statistically do not make as much money as men.
While insurance companies hope to offer affordable coverage to all of their customers, women face some extreme challenges in getting the same rates as men.
In the meantime, women just have to keep working and learning as best we can.Add to favorites