Woman may have worked their way up the corporate ladder to hold higher professional positions now than ever before. Yet even as their incomes are growing, they still lag behind men when it comes to protecting their finances. At least, these are the results of a research survey conducted by our Life Insurance partner TAL.
According to TAL’s survey, only 47% of women surveyed owned financial protection compared to 57% of men.
Not only that, women lag behind men in every area of Life Insurance, including Life Cover, Total and Permanent Disability Insurance, Income Protection and Trauma Insurance.
At Wealth Smart, we’re familiar with this conundrum – but it still surprises us. Every year, more women are entering the workforce and securing their own independent income stream.
And there are plenty of women out there whose incomes provide the sole financial source in the family. So the discrepancy in gender ownership of a Life Insurance policy is astounding.
TAL group CEO Jim Minto stated that Life Insurance is as relevant to women as it is to men.
“Life and related insurance is essential for protecting hard earned assets and safeguarding future lifestyle and family commitments – for women every bit as much as men,” he said.
Here at Wealth Smart, we want to add that in family scenarios in particular, it doesn’t matter whether a female partner supplies a monetary income to the household or not, her presence is irreplaceable regardless (just as it is for a stay-at-home dad).
Both partners are assets to the family household, whether both earn an income or one stays at home to manage the household.
Even if a stay-at-home parent doesn’t earn a regular income, they can save thousands of household dollars a year that might otherwise be spent on cleaning, child care, babysitting services, and much more.
In fact, back in 2013 BT Life Insurance Claims Manager Paula Bourke estimated that a stay-at-home parent’s contribution to the household with all their housework amounts to some $75,000 a year.
Imagine if a stay-at-home parent was no longer around or able to provide the usual – and substantial – help they offer a household. Think of the expenses that may accrue to cover the gap in her services. It could be as little as an ironing bill or as hefty as a school vacation care program for the kids while the other parent is at work. Whatever it is, the expenses start to stack up after a while.
Both partners – primary breadwinners and household managers alike – are essential to the management of a household. Minto explains:
“Having the right protection in place for each partner in a household recognises that each member of a household plays an important role in supporting both essential daily needs and longer term aspirations.”
That’s why it is always important to consider including both partners (regardless of their income contribution) in a Couples or Family Life Insurance policy.
If you’re not sure whether you should be protected, it’s worth talking to a Life Insurance professional. At Wealth Smart, we can take sum of your circumstances to determine just how much cover your household might need. Contact us to arrange a no obligation consultation or to request a quote today.
Read about more findings from the survey with this Super Review article.