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Women Do Not Buy Enough Life Insurance

Women Do Not Buy Enough Life Insurance

February 01, 2021

Women may think their lives are worth the amount of money they make, but what about stay-at-home moms who do not have a traditional salary? Women have a wide range of responsibilities including being professionals, caretakers, executive chefs, household managers, and more. Knowing this, it is hard for a woman to accurately determine her economic worth, but her value goes way beyond just a salary. A woman's absence leaves both financial and emotional wounds within the family unit. Her role is vital, and it is important for her to validate this value by purchasing life insurance.

Traditionally, women make less than men in the workplace. As a result, the percentage of women with life insurance policies is much lower than that of men with policies. Recently, Forbes reported that compared to 79% of men covered by life insurance, only 67% of women are covered. Additionally, the average policy written for a man has a death benefit of $190,000 more than one written for a woman.1

Why is this?

Women tend to estimate their policies should be less than half as valuable as men's. In a survey, women reported they wanted an average of $175,423 in coverage while men expected $355,348.1

A woman's worth goes well beyond any number written on a slip of paper. reported that if all the responsibilities of a stay-at-home mom's jobs were added together, her salary would equal $162,581 a year. Generally, people tend to purchase life insurance policies that are between five and ten times their annual income. If a stay-at-home mom follows this general rule, she should be considering policies around $1.6 million.2

When a woman passes away, she leaves behind not only emotional suffering, but a significant financial impact as well. Her widow now needs to pay for childcare and other services to continue running his household smoothly. Life insurance is a tool families use to help ensure they can focus on the emotional toll of death without having to worry about struggling with the financial impact of it.

Women play such important roles in families and communities, yet many do not believe they need a life insurance policy. It is time to change this belief. Even single women who tend to take care of aging parents have many reasons to consider coverage. Life insurance is important for all women to help preserve their legacy. Whether women are in the workplace, raising a family, or both, they should consider investing in their loved ones.

1 Source: Frazier, Liz. “Why Women Don't Purchase Enough Life Insurance...And Why They Need More.” Forbes. September 19, 2019.
2 Source: “Moms: We know you’re worth it. But how much is “it” really worth?” Accessed March 26, 2020.