For the sixth year in a row, the percentage of uninsured women has increased, according to the 2022 Insurance Barometer Study by LIMRA and Life Happens.
Only 46% of women report having life insurance, compared to 53% of men. However, a greater proportion of women than men feel they need (or need more) coverage (44% vs. 38%).
Despite their perceived need, just over a third of uninsured women (36%) say they plan to buy life insurance in the next year, the report noted.
Reasons women give for not having coverage include:
- It’s too expensive: 39%
- I have other financial priorities now: 37%
- Not sure how much or what type to buy: 22%
Getting more women to shop
In a recent interview, Juli McNeely, past president of NAIFA and financial representative with McNeely Financial Services, Inc., shared the approach her firm uses when selling financial products and services to women.
McNeely noted that there was a time in her career when women had less insurance coverage (life, DI, accident) than men. In recent years, she said, that has changed, as more and more women are making financial decisions for their families. Most are employed and some are the main breadwinners of their families.
As McNeely and her staff work with female clients and prospects, the strategy they use is to include them in the journey and the conversation, whether they are single or partnered with a spouse or significant other.
“Our job as financial planners is to help our clients analyze risks and plan for the future,” she said. Regardless of their marital status, she said, women usually like to plan ahead.
In addition, McNeely has found that by using a financial planning method with a deliberate data collection process, her firm rarely has trouble concluding that both men and women need adequate insurance protection and can benefit. by having a sound financial strategy.
When working with her clients, McNeely often likes to use a strategy that paints a picture of the scenario they might be facing.
An example of this strategy goes something like this:
“Mrs. Perspective, what if you weren’t here tomorrow or you got hurt and couldn’t go to work every day? How would your family handle the loss of income, or worse, if you died suddenly? Let’s talk about this scenario and see if there is anything we can do to help your family through this difficult time and reduce the financial burden.
“After all, we both know that your family depends a lot on you as a mother and wife, and they also rely on your income for their daily needs. This is especially critical if they are dealing with the emotional toll of your absence. Let’s see if we can eliminate the financial pressure on them.”
Generally, McNeely said, that conversation leads to a conversation about life insurance and disability income insurance.
Ayo Mseka has more than 30 years of reporting experience in the financial services industry. She previously served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact him at [email protected].
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