All the Single Ladies … Pay More for Insurance – ValuePenguin

Women spend almost double the amount of their incomes on health insurance than men. Let’s take a look the way life and auto insurance compare.

Single women in the U.S. consistently pay more in dollars and as an amount of earnings than males in health coverage, as per the most recent ValuePenguin analysis of U.S. Bureau of Labor Statistics (BLS) information.

Women paid on average 6.8 percent of their pretax earnings for healthcare coverage for 2020. That’s almost twice the 3.9 percent that men spent due to the higher cost of up to $510 and the enduring wage gap between men and women.

This unbalanced impact is evident over a range of income levels and ages and is reflected in the cost of life and auto insurance, as the data show.

Women are more likely to spend their money for health insurance, than males. are more likely to have health insurance than. men health insurance spending according to age Women are more expensive than. men Health insurance expenditure by income Women have more money on life and auto insurance, and health insurance than men. Methodology

The key results

  • Single women pay nearly two times as much of their earnings in health insurance as single males. Single women paid an average of $2,406 in medical insurance by 2020 equivalent to 6.8 percent of their annual income. Men who are single paid $1,896 on average, which is 3.9 percent of their annual income.
  • Women who are single put a greater amount of their earnings towards health insurance than males in all age ranges. The gap gets wider as they the age. For instance, women over 65 spend 11.7 percent of their annual income on health insurance . This is more than three percentage percentage points more than males similar to their age (8.4 percent).
  • The same scenario is true for all income levels. Women who are single and earn less than $15,000 annually contribute a staggering 20.7 percent of their income per year, which is a median amount, for health insurance, compared to 15.7 percent for men.
  • This isn’t just about health insurance, either. Single women are more likely to put a larger portion of their earnings into life and auto insurance than men who are single. Women allocate 2.4 percent of their earnings per year, on average, towards auto insurance, in contrast to 1.9 percent for males. Women also put 0.7 percent of their earnings per year, in average, towards life insurance, in contrast to 0.4 percent for males.

Women invest more on health insurance than males.

Single women pay nearly double the amount of their earnings in health insurance as single males, as per the ValuePenguin study. On average, women paid $2,406 in healthcare insurance for 2020. This is significant 6.8 percent of their annual earnings. Single men, however, pay $1,896 for health insurance on an average, which is only 3.9 percent of their annual income.

The study looked at individual data to better understand the people who are spending money and at what amount. It used data taken from the Consumer Expenditure Surveys of BLS which defines health insurance in terms of “traditional fee-for-service health plans, preferred-provider health plans, health maintenance organizations , commercial Medicare supplements and other health insurance.” Although the ValuePenguin study focused on the 2020 budget, a deeper dive into information from 2016 and 2019 showed the same patterns. Women typically spend more on their pay by percentages or dollar amounts to pay for health insurance expenses but earn less.

For instance, women paid more of their earnings in health insurance than men in 2016 and in 2019. As the average pretax income grew for women between 2016 and 2019 and between 2019 and 2020 as did their health insurance expenses in dollars.

Women earned an average of $33,987 during 2016, and $33,057 in 2019 and then $35,530 by 2020, however their health insurance expenses remained at the pace at 6.5 percent of their earnings or more. Single women spent less of their earnings (6.8 percent) for health coverage in 2020 than 2019 (6.9 percent) however, their expenditures as a percentage of their income were still close to 7 percent. In dollar terms health insurance premiums for women went up from $2,009 in the year 2016 to $2,406 in the year 2020 which was an increase from $2,287 the year before.

  • Annual health insurance expendituresPercentage of income spent on health insuranceAnnual health insurance expendituresPercentage of income spent on health insuranceAnnual health insurance expendituresPercentage of income spent on health insurance
  • Women$2,0096.5%$2,2876.9%$2,4066.8%
  • Men$1,6544.0%$1,7963.9%$1,8963.9%

Source ValuePenguin analysis of U.S. Bureau of Labor Statistics (BLS) Consumer Survey of Expenditures data.

Single women have paid around 7 percent of their income before tax for health insurance over the past few years, the figures showed that single males spend an average of 4 percent of their income to health insurance. For single males, the averages were 4.4% during 2016 while single men paid 3.9 percent for 2019 and in 2020.

The $1,896 average for males in 2020 is still less than what was that women paid in 2016. However, the average female earnings before taxes of $35,530 for 2020 isn’t just lagging the men’s average annual income of $48,994 in the same period however, it also falls short of the average for men of $41,359 in the year 2016 by more than $6,000.

Women are different from. men health insurance expenditure at the age of 65

Single women pay a greater portion of their pretax earnings to cover health insurance in all age bracket.

Health insurance costs at the age of 65 (2020)

  • Females younger than 25$18,497$4382.4 percent
  • Ages 25- 34$46,944$1,2732.7 percent
  • Aged 35-35, women 44$55,187$1,6092.9 percent
  • Ages 45-54. 54$45,656$1,6393.6 percent
  • Women between the ages of 55 and 64$43,397$2,0774.8 percent
  • Women ages 65 and older$28,172$3,29311.7%
  • Men under 25$22,859$4141.8 percent
  • Males between the ages of 25- 34$53,531$1,0952.0 percent
  • Men between the ages of 35 and 44$62,175$1,4382.3 percent
  • Men aged 45 to 54$66,750$1,7982.7 Percentage
  • Ages 55-64, Men aged 55 to 64$51,843$1,8693.6%
  • Men ages 65 and older$36,821$3,0988.4%

Source Analysis by ValuePenguin of U.S. Bureau of Labor Statistics (BLS) Consumer Survey of Expenditures.

As women and men age, the gap gets wider between the amount men contribute to their health coverage and the more substantial percentages women pay. Between the ages of 55 and 64 the single females were paying 4.8 percent of their earnings in 2020 to pay for health insurance, as compared to the men’s average of 3.6 percent. This increased to 11.7 percent when they were the age of 65 and over, while the men’s share was 8.4 percent.

The most lucrative years for women are (ages 35-44) as indicated above, they spend nearly 3percent of their earnings in health care. The highest earning years for men are about a decade later at 45-54 and their total health insurance allocation as a percentage of pay is 2.7 percent during those times.

Furthermore, women spent more dollars in health insurance than men in all age group , despite having lower incomes, with the exception of the 45-54 age group who paid $1,639 in comparison men’s $1,798. But men made more than $20k more in average over females in the same age range. an average of $45,656 a year for single women in comparison to $66,750 for men.

Women pay to live longer

average life duration ranges from 79.9 for women living in the U.S. and 74.2 for males, as per the Centers for Disease Control and Prevention (CDC).

“Insurers that charge more based on gender cite health risks as the main factor,” claims Robin Townsend, ValuePenguin health and life insurance specialist. “Specifically, women are considered a higher risk because they tend to visit the doctor more frequently, have more complex medical issues including pregnancy and live longer than men.” A widely cited study from 2004 on the distribution of lifetime healthcare costs revealed that at the time, the lifetime costs per capita were 33% more for women than men $361,200, versus $268.700, respectively. The study attributed the increase in costs to the longer life expectancy of women as well as the necessity of insurance coverage.

In addition, the disparities in premiums among genders could be greater in the event that they were covered under the Affordable Care Act (ACA) and Medicaid were not taken into consideration. As of 2010, under the ACA law, insurance companies cannot base rates on genders for people who receive ACA insurance either on their own or through a small-sized employer with 50 or fewer employees.

“The ACA gender law doesn’t apply to large companies with 51 or more employees, or to private insurance options like short-term medical,” Townsend states. “This leaves a large number of women still subject to gender-based insurance rates.”

Women compare. men health insurance expenditure according to income

The idea that women pay more for health insurance was evident across every income range as the ValuePenguin analysis revealed. Women who made less than $15,000 per year were able to pay a staggering 20.7 percent of their earnings in the average for health insurance, compared to 15.7 percent for males. A single woman earning the average of $8,130 could expect to pay $1,685 for health insurance premiums. The data for 2020 revealed.

The amount of income that is paid towards health insurance decreased for both genders with increasing earnings, which reflects the fact that income is higher by thousands than the average cost of health insurance, which do not exceed $3000 on average until 65 or more.

Single women who earn in the bracket that includes that U.S. average pretax income for women who earned $35,530 a year were required to pay 7.5 percent of their earnings towards health insurance in 2020. The bracket that contained the typical income of males who were single ($48,994) included a health insurance cost of only 4.4%.

Health insurance costs in relation to income (2020)

  • Women earning less than $15,000$8,130$1,68520.7%
  • Women earning $15,000 to $29,999$21,137$2,77013.1%
  • Women earning $30,000 to $39,999$34,348$2,5797.5%
  • Women earning $40,000 to $49,999$44,328$2,4495.5%
  • Women earning $50,000 to $69,999$58,574$2,4904.3%
  • Women earning $70,000 or more$110,557$2,8972.6%
  • Men earning less than $15,000$6,988$1,09915.7%
  • Men earning $15,000 to $29,999$21,564$1,9769.2%
  • Men earning $30,000 to $39,999$34,605$1,5994.6%
  • Men earning $40,000 to $49,999$44,554$1,7654.0%
  • Men earning $50,000 to $69,999$58,191$2,0503.5%
  • Men earning $70,000 to $99,999$81,444$2,2642.8%

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Source ValuePenguin analysis of U.S. Bureau of Labor Statistics (BLS) Consumer Surveys of Expenditure data. Note that the BLS has different categories of those with higher earnings (a maximum of $70,000 for women, and the maximum $100k or greater for males).

Women spend more money on life, auto and auto insurance, and other policies than men.

Despite the obvious higher cost of health that drives premiums for women up and up, they aren’t able to get away with lower premiums for seemingly non-related risks like auto and life insurance, neither.

Single women also devote more of their earnings to life and auto insurance than men who are single. Women contribute 2.4 percent of their earnings in the average for insurance for their automobiles, compared to 1.9 percent for males. Additionally, women allocate 0.7 percent of their income per year, in average, towards life insurance, as opposed to 0.4 percent for men.

Auto insurance

Single women were charged 840 dollars on average for automobile insurance that includes insurance premiums for vehicles, trucks and other vehicles according to the BLS. The average for men was $946.

Men pay higher on a dollar basis as a percentage of their income than women, the proportion of income is higher for women due to the disparity in salary between male and female. The 2.4 percent of income that single women earn overall reflect an average salary of $35,530. Men’s average of 1.9 percent is based on a wage of $48,994.

The women between the ages of 25 and 34 have the highest cost for auto insurance . It’s $1,097 per year for an average of $46,944. This amounts to 2.3 percent of their income. The highest-priced age bracket for males in dollars is between 45 and 54, when they earn $1,076 and earn an average pretax income of $66,750. It’s just 1.6 percent of their income during the peak years of their earnings.

The cost of auto insurance based on age (2020)

  • Women under 25$18,497$3772.0 Percentage
  • Ages 25-35: 34$46,944$1,0972.3 percent
  • Women aged 35 to 44$55,187$1,0391.9 percent
  • Ages 45-54. 54$45,656$1,0412.3 percent
  • Women between the ages of 55 and 64$43,397$9632.2 percent
  • Aged 65 and older$28,172$7422.6 percent
  • Men under 25$22,859$5782.5 percent
  • Males between the ages of 25 and 34$53,531$1,0251.9 percent
  • Men between the ages of 35 and 44$62,175$1,0471.7 percent
  • Men aged 45 to 54$66,750$1,0761.6 1 %
  • Ages 55-64. 64$51,843$9351.8 Percentage
  • Men who are 65 or older$36,821$8972.4 percent

Source Analysis by ValuePenguin of U.S. Bureau of Labor Statistics (BLS) Consumer Surveys of Expenditures.

For an apples-to apples (or similar group of age) comparison between a 25- and 34-year-old woman’s 2.3 percent share of earnings before tax going towards the cost of auto insurance is more than the average man’s expense of 1.9 percent, or $1,025 for auto insurance premiums. an average of $53,531 in earnings.

While women’s earnings grew however, their total insurance expenditures remained steady. Women paid $717 on average per year for auto insurance in 2016, for a salary of $30,987 or 2.3 percent of their income. In 2019, like one year earlier women were charged 2.5 percent per year for car insurance, netting $814 based on an average annual pretax earnings of $33,057.

The proportion of income men earn from auto insurance has remained steady also, but it’s far less of a pay cut than for women. The figure was 2.0 percent in the year 2019 and also $890, and the pretax income of $45,566. The proportion of their earnings spent on auto insurance premiums has been creeping upwards. Men who were single payed on average 1.5 percent of their earnings towards auto insurance, which was $638. The average was $41,359.

Factors that influence the price of insurance for automobiles are personal credit score, accidents records and the state the state where one lives.

Life insurance

Women are also paying higher premiums for life insurance on a per-dollar basis as well as an amount of income than men, despite having a longer life lifespan. They paid an average of $241 which is 0.7 percent of their earnings, to purchase the insurance they needed in 2020. The men paid $194, or 0.4 percent, for the category of life insurance.

There is a BLS Life insurance definition is more expansive. It covers the cost of term and whole life insurance and endowments as well as mortgage guarantee insurance mortgage life insurance, as well as the cost of personal liability insurance as well as disability and accident insurance, and other insurances that don’t include vehicles and homes.

Women pay as much as $393 in life insurance within the 65-plus category, which reflects an increased risk of dying at this time, while men pay as high as $262 on average for the same age group.

Life insurance expenditures through age (2020)

  • Women under 25$18,497N/AN/A
  • Ages 25-35 34$46,944$1050.2 Percentage
  • Ages 35-35: 44$55,187$2400.4 percent
  • Ages 45-54. 54$45,656$2080.5 percent
  • Aged 55 to 64$43,397$2760.6 Percentage
  • Aged 65 and older$28,172$2931.0 percent
  • Men under 25$22,859N/AN/A
  • Ages 25-35 34$53,531$1510.3 percent
  • Ages 35-35. 44$62,175$1950.3 percent
  • Men between the ages of 45 and 54$66,750$2070.3 Percentage
  • Ages 55-64. 64$51,843$1950.4 percent
  • Men who are 65 or older$36,821$2620.7 Percentage

Source ValuePenguin analysis of U.S. Bureau of Labor Statistics (BLS) Consumer Survey of Expenditures data.

In the case of term life insurance, men pay 23 percentage points more on average than women according to a separate analysis by ValuePenguin.

Premiums for life insurance can increase for those who smoke. The BLS report showed that men paid twice as much as women did for smoking and tobacco products in 2020, which was $318 or $156,, but this didn’t appear to have much impact on the total cost.

Methodology

ValuePenguin researchers looked at 2020 data of the U.S. Bureau of Labor Statistics (BLS) Consumer Surveys on Expenditures to assess the variations in life, health and auto insurance expenditures for men and women in general and also by age and income bracket. Researchers also examined expenditure and income data in 2016 as well as 2019 to create comparisons.

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