So what’s preventing more women from buying life insurance? That was the main question and topic for advice during a recent LinkedIn event.
Executives from LIMRA and LOMA shared some useful insights into women’s ownership of life insurance and suggested a few steps advisors can take to persuade them to obtain life insurance or to purchase more of it.
Alison Salka, SVP and head of LIMRA research, LIMRA and LOMA, told attendees that the 2023 Insurance Barometer Study shows that women comprise a significant market opportunity for the life insurance industry, and they make up nearly half of the U.S. workforce, according to the Bureau of Labor Statistics. Women also said that they need life insurance. In fact, 44% of them said they need life insurance, or they need more life insurance. This represents about 54 million adults, Salka said.
In spite of this critical need, women are less likely to own life insurance than men. In fact, 49 % of women have life insurance this year, compared to 55% of men.
Women’s financial concerns
Even though women said that they need life insurance, they are oftentimes grappling with a host of financial concerns, said Gina Birchall, COO of LIMRA and LOMA.
For example:
- Forty-seven percent of them are concerned about not having enough money for a comfortable retirement.
- Forty percent are worried about paying for long-term care services if they are to become unable to work or to take care of themselves.
- Forty percent worry about their ability to save enough money for an emergency fund.
Engaging female consumers
Because of these concerns, life insurance is not usually a top concern for many women. As a result, advisors should position life insurance as part of a way that women can use to take care of themselves and their families financially, Salka said.
As advisors work with these women, they should keep in mind that education is key. For example, 61% of the women surveyed said that they would be interested in a policy that would provide a guaranteed income for them in retirement, but fewer than half of them are even aware that such a policy exists.
Single mothers comprise another group that is in dire need of life insurance, Salka pointed out. 15. 62 million families in the U.S. are headed by single mothers, who tend to have lots of responsibility and experience higher levels of stress than men.
Yet, only 41% of single moms have life insurance, even though 59% of them said they need life insurance or need more of it. This represents a market opportunity of five million households. And 38% intend to buy life insurance this year.