Why do females receive less lifetime monthly income from a structured annuity than a males of the same age and health status , and having the same annuity cost?
A. Statistics show that females have a longer life expectancy than males. Think of annuities as “income insurance”. Since the period over which females are “insured” is statistically longer, it follows that the cost of that “income insurance” is higher. Thus the income per dollar of funding is less. The reverse happens with other financial protection products, such as life insurance, where the cost of insurance is less because a female has a statistically lower mortality risk.
