Life Insurance

Life Insurance Awareness: The Women's Market

Financial professionals are working with more female clients now than in the past. Women are increasingly becoming the primary breadwinner and the financial decision maker of their households. But despite their increased responsibility, many report feeling underprepared when you are looking at long-term financial planning. Learn their top concerns and where life insurance can play a role.

In an effort to unlock what makes women tick, Prudential conducted its eighth biennial study entitled “Financial Experience & Behaviors Among Women.” Here's what it found:

Women feel more financially secure

Since the financial crisis of 2008, women at large appear to be less worried about their long-term financial goals, as individuals with concerns about protecting investments from volatility dropped from 94 percent to 75 percent over the final four years. What women are most worried about are having enough money to maintain their lifestyle in retirement and not being a financial burden for their families because they age and require more care.

While women appear to speak as a block when you are looking at their financial goals, their confidence in achieving them varies with a few factors.

For example, married women who contribute for their household income but are not the primary breadwinner, are the most confident in being able to meet their long-term financial goals. According to the study, nearly 40 percent consider themselves on or ahead of schedule when you are looking at their financial goals. However, just 32 percent of married women who're the primary breadwinners consider themselves on track or ahead of the curve. Divorced or widowed women are the most likely group to state they are behind schedule – to the tune of 51 percent. Single woman are similarly pessimistic, with 44 percent reporting they're behind when you are looking at planning and saving for retirement.

Financial drivers for women

Despite the overall confidence women seem to be feeling regarding reaching their financial plans, it appears they still feel relatively unprepared to create educated decisions. When you are looking at basic financial products, confidence is high – according to the Prudential survey, 92 percent have a firm understanding of savings accounts and 75 percent feel confident within their knowledge of life insurance.

But do you know the factors that are truly vital that you women? According to Prudential’s survey, the very best concern of women is having enough money to maintain their lifestyle throughout retirement, as 93 percent of respondents indicated it was either very or somewhat important. A close second is not to be a burden on their loved ones, with 91 percent saying it was vital that you them.

Rounding out the top five financial concerns were making sure they didn't outlive or fully spend all of their savings, maintaining a standard of living for his or her families should they die unexpectedly or become disabled, and protecting their investments and retirement savings from market volatility, with 88 percent, 82 percent and 78 percent of woman respectively indicating those were very or somewhat important to them.

The confidence gap

While much has changed within the last decade, one thing which has remained virtually static is the confidence gap. According to Prudential, 75 percent of women surveyed this year said having enough money to keep their lifestyle through their retirement is essential, but only 14 percent are very confident in their ability to meet that goal.

Forgoing financial professionals

As women become more confident within their own understanding of their finances, they are also feeling more comfortable handing their financial decisions on their very own, without the use of a financial professional. According to Prudential, just 31 percent are dealing with one, compared to nearly 50 % in 2008. Of those who are using the services of the financial professional, 53 percent say they are on track or ahead of scheduled for his or her retirement planning, compared to just 23 percent of those who aren’t utilizing an advisor.

Market opportunity

Despite the truth that women are increasingly striking out on their very own in terms of financial planning, a long-term financial strategy from a professional that incorporates a well-structured life insurance policy has the ability to satisfy women’s desire for a financially secure retirement, as well as asset protection. Make certain your clients understand that life insurance for women can offer:

  • Income protection
  • Enhanced retirement assets
  • Long term care
  • Income to dependents or heirs
  • And more!

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