How men and women perceive their value when looking at life insurance coverage.
Discussions about gender continue to be a hot topic in society. From politics to leadership to household roles, there are many people turning the tables on the traditional views – and for good reason. Women have proven their worth, value, and opportunity time and time again. But what about life insurance? It’s well-recorded that women have a longer life expectancy than men. As societal norms evolve, it’s also important to understand how gender may also impact a family’s financial wellbeing.
Life insurance is important for everyone to consider. Over 80 percent of Americans believe most people need life insurance to help replace the income of someone who dies but less than 60 percent of people actually have it. Fewer women than men have any type of life insurance coverage.
Conventional wisdom has always stated that you generally need five to ten times your annual salary in life insurance coverage. However, when looking at the gender gap, this doesn’t always stack up. If women are earning less compared to men, the life insurance rule of thumb undervalues the contribution of women, which can put a family’s financial security at risk. What’s more, it doesn’t factor in the cost savings generated by a stay-at-home parent. They may not earn a salary but there is real value in raising children.