We spoke to Pascale Helyar-Moray – an Ambassador for the Australian Gender Equality Council, and Founder and CEO of Super Rewards – to ask what steps women can take to make sure they don't lose out.
Important: Any information here is general and should not be taken as personal advice.
When it comes to life insurance, I've always thought it's better to have more and not need it, than to need more but not have it.
You'd think due to the fact women live longer than men, they'd be less likely to claim on insurance and this would be reflected in lower premiums.
But things aren't that straightforward. I found this out when speaking to a life insurer recently. I learned that, at around the ages of 35 to 40, there's a shift in pricing against women. And, after digging into it more, it's basically because – wait for it – women generally take better care of their health compared to men.
A financial adviser Finder spoke to also confirmed that women pay more for income protection than men. Typically, women also pay more for trauma insurance. This inequality is compounded by the fact these life covers tend to cost more than death cover, which women are less likely to claim on as they tend to live for longer.
Women are punished for taking action on their health
If they feel that lump in the breast, they're more willing to go straight to the doctor about it and this necessitated treatment.
On the other hand, and we're of course talking in generalisations here, men tend to put off the problem about a strange lump or ailment.
But life insurers know that women are more likely to take action. Therefore, there's going to be a higher degree of medical treatment and a cost outlay required. And that's why women are charged more.
A lot of traditionally male jobs have an increased risk factor of dangerousness to those jobs as well. So, again, you'd reason that men would pay more to reflect that higher risk profile as well. Not so.
My 3 key tips for women
Tip 1. Act now on life insurance
It sounds obvious, but first thing's first, keep going to the doctor. It's a no-brainer as your health isn't something to leave to chance by doing nothing.
Ask yourself, what's the bit I can control here? Don't put off 'What if' scenario planning, even though it can be very confronting when it comes to illness, disability and death.
While it's counterintuitive, you'll want to consider life insurance when you're in tip-top shape. This is absolutely a worthwhile investment of your time and helps provide a safety net – both financially, and mentally.
Go and get your life insurance and lock it in early to get better terms if you can. If you wait and get your cover at a later date, you might find the specific condition you've since had is excluded from your policy.
Tip 2. Shop around
Even if you don't want to sit down with a financial advisor, or you aren't necessarily comfortable with shopping around by looking at multiple policies, it's important to start somewhere.
You could reach out to an insurer and get advice from them on whether they think you are adequately insured. You could ask them what the cost would be for a certain amount of cover if you were to join them as a new customer.
Then, you could go back to your existing insurer and ask them if you can increase your cover while remaining on the same premium the other company was offering you.
I wouldn't assume your insurer has your best interests at heart. You're part of various cohorts and algorithms to them. So why not put them to the test?
Finder survey: What is the main reason people take out income protection insurance?
Response
Female
Male
Peace of mind
4.22%
3.34%
I have a mortgage
2.81%
4.08%
I have financial dependents
1.76%
2.6%
I'm worried about being made redundant
0.35%
0.93%
Other
0.35%
0.93%
I'm self-employed
0.7%
0.56%
Source: Finder survey by Pure Profile of 1110 Australians, December 2023
Why compare life insurance with Finder?
You pay the same price as buying directly from the life insurer.
We're not owned by an insurer (unlike other comparison sites).
We've done 100+ hours of policy research to help you understand what you're comparing.
Tip 3. Lean on your networks
Seek out second and third opinions – such as anyone who you can lean on from your personal or professional networks who has a history with life insurance – so that you can learn the fundamentals from them. They could help you to join the dots and ultimately have a better picture of what a good deal looks like.
Also, I'm a big fan of Facebook groups that help with budgeting and managing your household finances. Even with over 20 years of experience in finance, I still gain a lot of learning from these free groups.
Examples include Women with Cents and She's on the Money. Then there's the Barefoot Investor. Also, there's also a group called Thalia Stanley that I follow and it's dedicated to really helping educate women on the basics of finances.
These aren't necessarily content from a financial advisor's perspective. Instead, it's actual lived experience from other users, which is very powerful. Each has really engaged and educated members who invariably want others to do well. There's a whole lot of learning that can come off the back of that.
Why you can trust Finder's life insurance experts
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.
James Martin was the insurance editor at Finder. He has written on a range of insurance and finance topics for over 7 years. James often shares his insurance expertise as a media spokesperson and has appeared on Prime 7 News, WIN News, Insurance News, 7NEWS and The Guardian. He holds a Tier 1 General Insurance (General Advice) certification and a Tier 1 Generic Knowledge certification, both of which meet the requirements of ASIC Regulatory Guide 146 (RG146). See full bio
James's expertise
James has written 258 Finder guides across topics including:
Was your life insurance application denied? This article looks at the top reasons why your application might have been denied and what you can do to get the right cover.
finder's guide to choosing between stepped and level insurance premiums.
Feedback
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
You pay nothing. Finder is free to use. And you pay the same as going direct. No markups, no hidden fees.
You save time. We spend 100s of hours researching life insurance so you can sort the gold from the junk faster.
You can trust us. We say it like it is. We aren't owned by an insurer and our opinions are our own.