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For a long time the premiums that women had to pay for their life insurance were lower because of higher life expectancy. Insurance companies know that claims on life insurance policy from women tend to come later in life and until then they will pay more premiums than men. However soon this will no longer be the case because premiums for men and women will start converging from 2012 December since European court ruled out that different premiums is gender discrimination.
Women life insurance is important for two main reasons. First of all, more women decide to bring up their children alone. For single mothers life insurance is extremely important because after their death the child is left alone and even if relatives decide to take care of him it can be hard to survive financially. It is estimated that an average family in United Kingdom spends £572 per month for their child. After 18 years this amount is equal to £133,848. Even if women have a husband we can see a growing number of families where women are the main breadwinners. Secondly, even those women who are not working and earning money spend their time looking after children and taking care of the house. It is likely that after her death the husband will have to spend more money for the babysitter and the housemaid or work fewer hours so that he would be able to take care of the things his wife used to take care of before.
A study was conducted in 2011 and it evaluated the jobs that men and women do at home. It was estimated that women who take care of children or house do the work that is worth £32,032 a year whereas men do the work that is only worth £21,306. This basically means that in case of death of his wife a man would have to spend £32,032 a year to hire another person for taking care of the house and children.
Today women can buy life insurance from as less as £6 per month. The lowest rate is applicable for those women who are in their firth and fourth decade. Later the premiums tend to inflate as the women get older. However, a lot of insurance companies now offer life insurance with fixed premiums if the cover is not altered. As a result, it is wise for the women to insure while she is still young.
New life insurance policies can have additional benefits attached to them. First of all, a cover of certain female critical illness can be included. Secondly, insurance can pay a lump sum of money in case of the occurrence of certain congenital disabilities in new-borns. Last but not least, a cradle care benefit can be included. This benefit means that a lump sum of money is paid out if at the time of delivery the newborn has congenital abnormality, malformation or deformity.