How the industry can help more women achieve financial security

Despite the advances women have made in the workforce over the past 50 years, they still face income and wealth disparities. In 2023, a woman working a full-time job earned about 84 cents to every dollar a man earned working full time. Compounded over time, this income disparity can have a significant impact on women’s overall wealth and influence their financial decisions.

LIMRA research reveals that women are more likely than men to express financial worries, such as paying monthly bills, saving for emergencies and having enough money to retire comfortably. 

These immediate financial concerns likely contribute to women’s lower life insurance ownership. In fact, women are more likely than men to say they haven’t purchased the coverage they need because they believe it is too expensive (50% versus 45%). We often attribute this to a lack of knowledge about the actual cost of buying a policy — and that is likely part of it — but it also could reflect the fact that women, having less income and wealth, do not believe they can take on another financial bill even if it would provide future financial protection for their loved ones.

Although the self-reported life insurance ownership gap between men and women was at its highest level in 2024, it does not mean women don’t understand the value of life insurance. Last year, 45% of women — that’s 56 million — acknowledged they had a coverage gap, and 4 in 10 said they planned to buy coverage within the year. This is an opportunity for the industry to help women understand the important role life insurance can play in their overall financial well-being and the many ways a policy can help alleviate some of their financial concerns. Only one-quarter of women are confident in their knowledge about life insurance, and only 1 in 10 women believe they understand the various lifetime benefits permanent life insurance can offer. For example, women’s top financial concern is having enough savings for a financially secure retirement, yet less than half (46%) of women are aware that a cash-value life insurance policy could provide guaranteed income in retirement. 

Guidance matters

The importance of working with a financial professional is undeniable. In 2024, only 35% of women said they were currently working with an advisor. But LIMRA data show life insurance ownership is significantly higher for women who work with a financial professional.
Sixty-two percent of women who work with a financial professional own life insurance, compared with 37% of women without an advisor.

The good news is 3 in 10 women are looking for a financial advisor. Our research finds more than half of Generation Z and millennial women without an advisor (52%) are looking to engage one. This signals a significant opportunity, as younger adults have the highest life insurance coverage gap but also express greater intention to purchase coverage.  

Today, it is not enough to rely on personal conversations with clients. Websites and social media play a bigger role in how women seek information about financial products and services. Our research shows that 9 in 10 women say they use the internet to do research about life insurance, which means we need to ensure accurate, easy-to-access information is available. 

As we celebrate Women’s History Month, we should help women address their financial concerns and take the necessary steps to secure their financial future. Women recognize their financial vulnerabilities and insurance gaps and are looking for advice to help them address their needs. By meeting women where they are and listening to their needs, financial advisors can help more women protect their families with life insurance.

John Carroll is senior vice president, LIMRA and LOMA. He may be contacted at [email protected].