What is a life insurance quote? Why are there not flat rate policies or prices? This may seem unfair but before making that evaluation, all of the facts should be known. For example, it is known that women live, on average, a few years if not a decade, longer then men. While this may or may not be true in a given individuals life span it is true for a large population of individuals.
As a result of this face, life insurance quotes are generally lower for women than men and it is not entirely unfair. An individual passing away and their life insurance benefit paid out being lower than the total of the premiums they paid is something that almost never happens. The opposite is true, in fact.
The average cost of a $100,000.00 policy for a 40-year-old male might be $375.00 per year for a 30-year term, on average. A little math reveals that the total paid over the term of the policy is $11,250. Even if the policyholder expired on the last day of the policy, the total paid is only a fraction of the amount paid out to the beneficiary.
The perception that this is unfair comes from the fact that the same policy for a 40-year-old woman would be $301.00 per year. This comes from the fact that women live longer on average and the life insurance company is less likely to have to pay the benefit in the case of the woman. In either case, the benefit far outweighs the cost and this is possible due to the spreading of risk over larger populations. As a result, while a male will pay a little more the life insurance company does protect everyone.