The stats are in for women and life insurance. 44% of women have no life insurance. 60% of households are dual-income households. Nearly 4 in 10 mothers are primary breadwinners for their families. 5.2 million women are stay at home moms. Women earned 59.1% of degrees in North America. More than one in three women believes they do not have enough life insurance. 30% of women are out-earning their husbands, but wives’ life insurance ownership has not increased with their income. Salary.com calculated that the salary of a mother should be $162,581. 80% of consumers misjudge the cost of term life insurance.

Welcome to my new series on Life Insurance For Women. In the introduction, I mentioned the reasons why women need insurance and how it empowers you.

I am going to interview Chad  from GoLife insurance   https://golife.ca/fourcolumns on the following topics:

1. Women are being overcharged, a lot, for mortgage insurance – what you need to know!
2. Why women talk themselves out of the life insurance they want/need?
3. How to prepare for baby- 3 pieces to financial protection (will, mat leave savings, life insurance).
4. Is underwriting for women different?

In this second interview, we will talk about why women talk themselves out of the life insurance they want/need?

What percentage of women don’t own life insurance?

Over 40% of women have no life insurance coverage and of those that do have coverage, they own 25% less than men. Most households are dual income, and with more women being the primary income earner (30% are out-earning their husbands), life insurance ownership for women has not kept pace. Women place higher importance of owning life insurance than men but the insurance industry has not adapted to giving women access to quality advice and products.

The fear of being overinsured is powerful but how do women talk themselves out of the protection they need?

Financial behavior and psychology are fascinating and when it comes to life insurance there are 3 main reasons:

1. Underestimate their financial value
2. Convince themselves that they will adapt (ie. work more, move, adjust lifestyle)
3. Procrastinate and use “other” financial priorities as a reason to delay

Are there differences for stay-at-home mom’s vs. “working” mom’s?

Mom’s are worth a lot of financial value and just because it’s not reported on their tax return doesn’t mean it isn’t a significant number. Depending on which study you see the financial value of a stay at home parent ranges between $50,000-$120,000. Life insurance is replacement insurance. If there is financial value then getting good life insurance should be considered.

Why can our desire to make the “best” decision actually stop us from making a good one?

The fear of making a mistake is a powerful motivator that stops many women from getting life insurance. We want to get the best life insurance and make a good decision, so it can be easy to delay or delegate the decision. Delegation is vital to survival when juggling career, kids, self, friends, family, finances, food and more. Though men view risk and death differently than most women, leaving many with less coverage. Striving to make the perfect decision leaves many families with financial risk and vulnerability. Life insurance is much more of an “art” than science and having some coverage in place is always better than having none.

Why is it important for women to take control of getting life insurance?

Delegation is a critical part of a successful relationship and part of that delegation is making financial decisions. Life insurance is often not the most interesting topic but very necessary, so we delegate the decision to our partner and they don’t want to deal with it either, so it gets pushed down the priority list or forgotten. So we end in a place where both parties say “we need life insurance” but don’t find the time to get it done. Men and women also approach life insurance from different perspectives, generally, women do a better job and one reason why women are over 65% of GoLife applications. That’s why it is important that women take control of the process to ensure the right financial protection is in place.

Are women getting access to the right advice?

The life insurance industry has done a poor job of educating Canadians and especially empowering women to have confidence in making a life insurance decision. Generally, women are much better at understanding risk management than men but women often defer to their partners about decisions about life insurance. Determining how much life insurance to get is straight forward, eliminate debts and protect income. For most women that means 8-12 times annual income, meaning for many Canadians that’s about $500-$1.2 million of life insurance coverage.

What’s the #1 barrier for women to get started?

Over 80% of people misjudge the cost of life insurance, hence putting up an “invisible” barrier from the start. This misinformation leads to women to be convinced that they cannot afford the best life insurance. Thinking that good life insurance will cost a lot, individuals will also purposely low ball their need for life insurance, in the hope of a lower premium.  After realizing term life insurance is more affordable than expected individuals often change the amount applied for to match their actual needs.

Affiliate Disclaimer

Hi there! It is my goal to be completely transparent with you both here and within our community, and so I want to let you know that certain products and links to these products on this site are affiliate links. What are affiliate links? Essentially, when you click one of those links and make a purchase, I will earn a small commission at absolutely no extra cost to you. I am deeply passionate about this site, and it is my goal to make this a place where you can come and trust that the information you are reading empowers you.

Photo Credits: Amy Hirschi  Bewakoof.com Official CoWomen   Clarke Sanders Kevin Grieve  CoWomen  Wesley Tingey

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