In previous articles we exposed the effect of age and marital status on the general insurance costs of products presented to people, primarily those in Chicago. The author claimed that the Chicago area has some variances from the general population when it comes to the sets of demographics data that are pertinent to the insurance industry.

Sex in Life Insurance: There is plenty of national stats and studies in the insurance literature that signifies that females outlive males by about seven years. Besides, the mortality percentages among young men are little higher than females. The result of these mortality variations is substantial lower life insurance \’costs\’ for females. Notice that we used the term \’cost\’ and not \’premium\’. In universal life and whole life contracts, insurance companies charge more premiums (not more cost) which is basically the same amount for females and males as a \”investment\” aspect, not as cost of insurance. Therefore, the rate difference between females and males is more apparent in term insurance contracts.

There are no rate differences between females and males amongst the suburban population and the Chicago population with reference to life insurance products, or products that use mortality rates such as variable or fixed annuities.

Sex in Health Insurance: Yet again there are important researches that suggest that morbidity percentages among females are higher than their males counterparts during the beginning states of life. After that the percentages become comparable to men in mid age stages, eventually morbidity ratios start to go lower compared to men in the final stages of life. Morbidity ratio is defined as the rate of unhealthy to healthy persons in the population. These differences in the morbidity rates are mirrored with the same significance in the rates charged by the insurance company from customers.

A lot of people are not aware that most leading insurance companies have imposed excess charges on the residents of the City of Chicago for health insurance purposes. City of Chicago health insurance premiums are routinely 10% to 25% higher than their suburban equivalents. Insurance companies claim that the added charges are due to the advanced cost of health care services in Chicago.

Sex in Auto Insurance: Effect of gender difference on insurance rates is more prominent in the car insurance sector. Women spend less than males for the same products, about 30% to 45% less for ages beneath 25 years, depending on the precise age. The difference starts to disappear shortly after age 25 years.

Chicago automobile insurance rates for females are higher than their suburban counterparts for the simple fact that the Illinois car insurance rates are established by location.

Unisex Premiums in Insurance: Several insurance companies ignore gender as a selective feature when dealing with group or business insurance (health, life or auto,) and as a substitute they use Unisex Rates- same price for men or women. Some states including Massachusetts tried to apply certain rulings about the use of unisex rates. In the opinion of the author, unisex rates may just push the cost of insurance up. While women spend more for certain insurance products, they spend smaller for others. It makes no sense to invest so much in terminating the current quoting methods and try to make up new ones and then have the consumers assume the price of this change when there is no substantial signal that unisex pricing systems will ever save us any dollars.

Author Bio: Ed Sneineh, insurance professional for over 20 years, former college educator of insurance, and founder of Insurance Navy, a leader in providing more competitive Chicago auto insurance quotes. Visit our website and get your SR22 Car insurance quotes Illinois in 5 minutes or less. Insurance Navy represents major carriers such as AAA, Travelers, Progressive, Hartford, & many more.

Category: Finances
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