What to do about the pink tax on life insurance
Women are charged more than men for income protection insurance, but shopping around can be the secret to a lower price.
New research reveals that life insurance is the latest industry to subject women to the ‘pink tax,’ a phenomenon where women are charged more than men for the same product. Studies show that on average, income protection insurance costs women 32% more than it costs men.*
For example, a 27-year-old male nurse with $3,125 of monthly cover will pay an average of $58.42 each month, while a female nurse of the same age pays an average of $72.71. This discrepancy is reflected across a range of ages and professions.*
Here’s How You Do It:
Step 1: Select your current life stage below.
Step 2: Once you select your preferred coverage options, you will have the opportunity to compare quotes from multiple health funds.
Women who want to find the best value from their life insurance products—whether that’s income protection, trauma, TPD, or term—are in a better position when they shop around. UsingLifeInsuranceComparison.com.au is an efficient way to find affordable life cover, because it allows you to compare similar products side by side.
Income protection insurance provides many Australian women with peace of mind. If you are injured or become ill and have to take more than two months off of work, this type of life insurance can keep you financially afloat.
However, true peace of mind comes from knowing that you’re getting a fair deal on your insurance. For women who are paying the pink tax, a higher price can make you feel that you’re not getting your money’s worth. Comparing policies can be the key to making an informed decision on which insurer offers you the best value for money.
Insurers base their premium prices on claims history, and statistics show that women typically make more claims than men. In turn, insurers charge women a higher premium. However, there are three main features of income protection that can raise or lower your premium:
- The amount you are paid each month
- The maximum length of time your insurer agrees to pay out
- The amount of time you must be off work before payouts take effect
A short phone call with an advisor from Life Insurance Comparison can help you decide which features are most important to you, and how to leverage them to make your policy more affordable.
Saving money on life insurance is easier than you think, and thanks to an advanced online search engine, LifeInsuranceComparison.com.au can help you find a better deal in a matter of minutes. Your advisor will help you make the switch by handling the paperwork and liaising with the insurers, saving you both time and money without losing the peace of mind that comes with having good life cover.
*Canstar 2017 Direct Income Protection Star Ratings
Get Started Now:
Step 1: Select your state below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.