These days, there is hardly any issue regarding equality between men and women. It is evident that women now gain equal footing when it comes to income, employment opportunities, and education. However, when it comes to insurance, particularly income protection, there could be inequality. This is because in general, income protection insurance for women is more expensive.
In Australia, it is a rampant practice in the insurance industry to charge women with higher premiums for income protection compared to rates applied to men. This is true even if men and women are of the same age and occupation. However, this is considered fair as the decision for premium costs are based on various studies.
Be reminded that higher premium rates for women are not driven by biases toward them. Instead, those rates are influenced by historical patterns that show that women are more likely to file for and make claims than men. At the same time, when women fall ill, they usually take more time to recover.
Aside from higher risks, women’s anatomy are leading to higher recovery time. Men could file for claims only if they get injured on accidents or they get seriously ill. On their end, women not only file for claims at such instances; they could file for claims due to maternity, which could happen frequently. The claims incidence rate says it all. For now, there is no other way women could secure cheaper or less costly premiums to their income protection insurance policies as compared to how much men pay.