Source: The European Union: A Beginner's Guide (1 ed. 2012) by Alasdair Blair.
[p 139:] Gender has traditionally played a key role in the pricing of insurance policies.
In 2004 an EU Directive prohibited all discrimination based on sex in the access to a supply of goods or services. In principle the Directive therefore prohibited the use of gender as a method of determining insurance premiums and benefits with regard to contracts that were entered into after 21 December 2007. However, the Directive also stated differential pricing could be maintained where statistical evidence supported such an approach. Insurance companies regarded this as crucial because as women drivers are statistically proven to have fewer accidents than male drivers, premiums for female insurance policies have generally been lower. In a similar way, because women live longer, men have traditionally
received a higher rate from their pension annuities because their life expectancy is lower and as such their pension savings are able [1.] to produce
more incomeover a shorter time [End of 1.].
What have I misunderstood about 1? If male pensioners die earlier, then their pensions would be shorter, and the principal would generate less interest and fewer payments. So why