Why Don’t Women Own More Life Insurance?
Life Insurance
There is a significant gender gap when it comes to Life insurance.
This year, 2022, marks the 50th anniversary of the passage of Title IX, which gave women equal access to educational programs, activities, and federal financial assistance. We’ve come a long way since 1972—women are now more likely to enroll and graduate from college than men!1
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But a major gender gap still exists when it comes to Life insurance. According to a recent study, only 47% of women have Life insurance, compared to 58% of men. And when women are covered by Life insurance, their average level of coverage is significantly lower.2
or if they have it, want to get more coverage.3
More women say they want Life insurance than actually shop for it. Most understand their financial vulnerability, so why aren’t they purchasing coverage at the same rates as men?
Many face a host of challenges that influence their ability and willingness to secure the Life insurance they want:
- Pandemic pressures. More women have left the workforce during the pandemic and have been forced to sacrifice both their current incomes and their lifetime earning potential at greater rates than men. Not surprisingly, Life insurance ownership among women declined concurrently over the past few years.
- Lack of knowledge. The survey suggests that only 23% of women say they are extremely knowledgeable about Life insurance (compared to 34% of men). Those without an income, often don’t think they need coverage. Some are unsure how much coverage they should buy, and many don’t know how much it costs. A third of women overestimate the cost of Life insurance by over 500%, with younger women citing expense as the primary reason for not owning some or more Life insurance.4
- Competing priorities. The majority of women have competing financial priorities. Top financial concerns are saving enough for a comfortable retirement, establishing emergency fund savings, and paying for extended care. But Life insurance needs to be a part of the consideration set since women are accumulating not only more wealth, but also increasing responsibility for those in their care.
Women have very distinct Life insurance needs. Because they tend to live longer, Term Life offers a solution that can help prevent financial hardship for their families. It can also be converted to a whole life policy that offers the benefit of its cash value to be used in retirement.
It’s time to close the gender gap. Term Life insurance is generally the most affordable type of coverage for everyone—but especially for women, with lower rates due to their longer life expectancies. Buying sooner rather than later can help secure the best price. Purchasing coverage today is easier than ever—in some cases a medical exam may not even be required—making it easier for women to check it off the proverbial “to-do” list.
1 Pew Research Center, 2022.
2 “2022 Insurance Barometer Study,” Life Happens and LIMRA.
3 Ibid, 2022 Insurance Barometer Study.
4 “2021 Insurance Barometer Study,” Life Happens and LIMRA.
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