The gender gap in life insurance

The gender gap in life insurance is a prevalent issue, with men more likely to have coverage compared to women, as highlighted by various studies. A 2023 study by the Life Insurance and Market Research Association (LIMRA) indicates that only 49% of women own a life insurance policy, in contrast to 55% of men. Mutual of Omaha’s research suggests an even wider gap, with only 37% of women holding life insurance compared to 50% of men.

Despite the evident need for life insurance among women, various factors contribute to their lower ownership rates. A key factor is the undervaluation of household labor by women, who often bear the brunt of family responsibilities. Even with the shift towards remote work during the COVID-19 pandemic, women reported continuing to handle the majority of household duties.

The discrepancy in the perceived value of life insurance is also tied to the traditional wage gap. Women earned 84% of what men earned in 2020, as reported by the Pew Research Center. This wage gap influences how women assess their financial worth and, consequently, the value they attribute to their lives.

Bankrate suggests strategies to bridge the gender gap in life insurance. Recognizing the financial value of a stay-at-home parent’s contributions is crucial, as their work is estimated to be equivalent to a salary of around $184,000. This value should be factored into life insurance coverage to ensure adequate protection for beneficiaries.

It is emphasized that life insurance is not solely for replacing lost income but also for covering essential contributions, even if they are not directly monetary. Term life insurance, which is more affordable, is recommended for those looking for cost-effective coverage.

To minimize the gender gap in life insurance, cultural change is deemed necessary. Individuals can contribute by understanding the causes of the gap, considering life insurance coverage for both partners, and ensuring they have the right amount of coverage for their family’s needs.

In conclusion, the gender gap in life insurance is linked to the undervaluation of household labor and the gender pay gap. Despite these challenges, recognizing the financial value of contributions, especially from stay-at-home parents, is essential. Closing the gender gap requires cultural shifts and individual efforts to promote equal consideration of the financial worth of all individuals, regardless of gender.