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Insurance 101

Why are there gaps in life insurance for women?

Insurance 101

Why are there gaps in life insurance for women?

Financial planning for women is needed now more than ever.

Fact check: only 47% of women own a life insurance policy. Compare that to 58% of men. That isn’t to say that women aren’t concerned about the real and potential financial hardships they face. Even with that said, there continues to be gaps in life insurance for women when compared to men. These gaps can have serious ripple effects.

According to an analysis by the National Women’s Law Center, there are 817,000 fewer women in the workforce than in February of 2020. Considering that, prior to the COVID-19 pandemic, two-thirds of mothers were either the sole or primary breadwinners in their households, the need for coverage becomes clearer. But why do these gaps exist and how can we address the gaps in life insurance for women?

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  1. Why are there gaps in life insurance for women?
  2. Best life insurance for women
  3. Why do I need life insurance?

Why are there gaps in life insurance for women?

As noted in our study, “The (Financially) Unprotected Sex,” 42% of our survey respondents said that they were worried about their spouse’s ability to provide for their family, if they were to die. Yet according to a 2021 Insurance Barometer study released by the Life Insurance Marketing and Research Association (LIMRA), only 33% of respondents to their survey said they were likely to purchase life insurance coverage in 2021.

What’s informing this hesitancy? The study shows that while financial protection for women and their families is a primary concern, many women feel they aren’t knowledgeable enough to follow through on getting a policy.

In fact, only 22% of respondents to LIMRA’s Initiative Barometer Study said they felt knowledgeable enough, compared to 39% of men. This lack of knowledge creates barriers to securing policies. For example, 8 out of 10 women overestimated the cost of life insurance, despite the fact that women often pay less in premium costs than men. In that same study, women noted that having multiple coverage options and personalized coverage plans as important considerations. So where do we go from here?

Life insurance policy ownership gap

Only 47% of women own a life insurance policy. Compare that to 58% of men

Best life insurance for women

When we asked our survey respondents what would get them to purchase life insurance, 55% of them said that they would “if [they] got married or had a child.” 42% of them said they would purchase a policy “if [they] lost their job or had a high amount of debt.” So the need for life insurance is there amongst women. But what should women consider when looking for a policy? 

For one, being able to get a plan that has flexible coverage options. The ability to alter your coverage amount to better meet your needs seems important to the women surveyed across numerous organizations. Online life insurance providers are implementing this feature to capture this want. Take Wysh, for example. We offer flexible coverage options that you can change to better fit what you and your loved ones need.

Plus, considering the gap in perceived knowledge and confidence in policies, having strong life insurance customer service might help mitigate some of these anxieties. With a solid customer service team, women policyholders can not only feel more confident in their own protection, but convey that confidence with the other women in their lives. This, in part, is what makes our Wysh Granters team so important. They work hand-in-hand with policyholders and their loved ones to ensure things run smoothly, wherever they are in the process. 

Why do I need life insurance?

According to the data, women are often underrepresented and undercovered when it comes to life insurance coverage. This doesn’t have to continue being true. That’s why Wysh is committed to furthering the conversation on the gaps in life insurance for women and how we can use the online life insurance process to begin closing them. Women have always been and continue to be integral parts of the success of families and households, economic or otherwise. Let’s protect them like they deserve to be protected.

The opinions we expressed in this post are for general informational purposes only and are not intended to provide specific advice or recommendations.