The Importance of Life Insurance for Women

March 18, 20244 min read

One frequent oversight when it comes to life insurance for women is not fully recognizing their value. As women's roles in the workforce have expanded and their contributions have become more significant, there still exists a gap in life insurance coverage. Despite women's growing economic influence, only 47% of women have life insurance, which is 11% lower than their male counterparts. This disparity highlights the necessity of acknowledging and addressing the crucial role women play in financial planning and security, ensuring they are adequately protected.


The influence of gender is significant, extending beyond personal health to impact the financial stability of families. A well-known issue is the gender pay gap, where, on average, women earn 82 cents for every dollar that men do. This disparity highlights a broader economic challenge, but there's another, less discussed financial discrepancy: the life insurance gender gap. According to preliminary results from the 2021 Insurance Barometer Study conducted by Life Happens and LIMRA, only 47% of women have life insurance coverage compared to 58% of men. This gap not only reflects on the differences in insurance ownership between genders but also emphasizes the need for greater awareness and action to ensure that women, who play a crucial role in the economic health of their families, have adequate financial protection against unforeseen circumstances.

Several factors contribute to the gender disparity observed in the life insurance sector. This gap can be attributed to a variety of reasons, each playing a role in how men and women approach and are served by life insurance policies. Understanding these underlying causes is crucial for addressing the imbalance and ensuring that life insurance coverage is accessible and equitable for all, regardless of gender.

● The discrepancy in earnings between genders often translates into a disparity in life insurance coverage. Since the amount of coverage one can secure is frequently determined by a multiple of annual income, this wage gap has tangible effects on insurance benefits. Data from the Bureau of Labor Statistics reveals that on average, men make $55,744 annually, whereas women earn $46,488. Utilizing a typical multiplier of 10—which suggests that the ideal life insurance coverage should be roughly 10 times one's yearly salary—the calculation reveals a significant difference in potential coverage. Specifically, under these terms, an average woman might receive $925,600 less in life insurance coverage compared to her male counterpart, emphasizing the financial impact of wage disparities on long-term financial planning and security.

● The contributions of women through unpaid labor are significantly undervalued. Over a quarter of mothers dedicate themselves full-time to raising their children, with many others adjusting their work schedules to meet family needs. Although these women might not receive substantial salaries, or any salary at all, the economic worth of their unpaid work is substantial. It's estimated that the childcare, housekeeping, and additional tasks performed by stay-at-home moms could be valued at upwards of $178,000 annually. This situation is further complicated by the fact that many individuals secure life insurance through their employers. Although employer-provided life insurance is rarely sufficient, it serves as a crucial foundation for family financial planning. Regrettably, such insurance policies typically extend coverage solely to the employed individual, leaving a significant protection gap for those whose primary contributions are not monetarily compensated.

● There's a notable gap in financial literacy among women. Research conducted by FINRA highlighted this issue, showing that women correctly answered 48% of questions in a financial literacy assessment, compared to men who answered 58% correctly. This disparity isn't just about knowledge; it also reflects a broader issue of confidence in financial decision-making. Many women might feel unsure about their financial understanding, which can deter them from securing essential financial protections, such as life insurance. This hesitancy could lead to missed opportunities in safeguarding their financial future and ensuring stability for themselves and their families.

Addressing the life insurance gender gap requires recognizing the crucial role women play in family care and the substantial economic value of their often unpaid labor. The cost to replace these contributions if they were lost is considerable, underlining the essential need for life insurance coverage for women. To bridge this gap, women should actively assess their life insurance requirements, familiarize themselves with the fundamentals of life insurance, and consult with an expert to discuss appropriate coverage options. It’s about understanding that investing in life insurance transcends the simplicity of obtaining a quote and pressing the "Buy Now" button. Our website,, offers more insights into the importance of thoughtful consideration and informed decision-making in the process of securing life insurance, emphasizing the step beyond just initiating a purchase.

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