By Laura Schreier
Banker & Tradesman Reporter

A pair of gender-based bills got a green light from the House this week, as lawmakers approved one bill that would require gender-blended pricing of annuities, and another that would get rid of similar pricing for life insurance. In both cases, women will pay lower rates.

Annuities typically cost more for women. With an annuity, the customer pays a lump sum to an insurance company, which in turn repays them with an income for life. Because women live longer, they usually have to pay more up front. Under the current bill, companies would be required to blend pricing for men and women, lowering the costs for women.

That situation is reversed when it comes to life insurance costs; because women live longer, they pay less than men. Under Massachusetts law, the Savings Bank Life Insurance Co. had been required to use gender-blended pricing, balancing out the prices between the two. The new bill would eliminate that requirement, allowing actuarial principles to take over and lower the price for women.