Number of uninsured women grows for sixth year, study finds

For the sixth consecutive year, the percentage of uninsured women has increased, according to the 2022 Insurance Barometer Study by LIMRA and Life Happens.

Just 46% of women report owning life insurance, compared with 53% of men. However, a greater proportion of women than men recognize they need (or need more) coverage (44% versus 38%).

Despite their acknowledged need, just over a third of uninsured women (36%) say they plan to buy life insurance in the next year, the report pointed out.

The reasons women give for not having coverage include:

• It’s too expensive: 39%
• I have other financial priorities right now: 37%
• I’m not sure how much or what type to buy: 22%

Getting more women to buy

In a recent interview, Juli McNeely, past NAIFA president and financial representative with McNeely Financial Services, Inc., shared the approach her firm uses when selling financial products and services to women.

McNeely pointed out that there was a time in her career when women had less insurance (life, DI, accident) coverage than men. In recent years, she said, that has changed, as more and more women are making the financial decisions for their households. Most are employed, and some are the primary breadwinners in their household.

As McNeely and her staff work with female clients and prospects, the strategy they use is to include them in the journey and conversation, whether they are single or partnered with a spouse or significant other.

“Our job as a financial planner is to help our clients analyze risks and plan for the future,” she said. Regardless of their marital status, she said, women typically like to plan ahead.

In addition, McNeely has discovered that by using a financial-planning method with a deliberate data- gathering process, her firm rarely has issues with the conclusion that both men and women need adequate insurance protection and can benefit from 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 may face.

An example of this strategy goes something like this:

“Mrs. Prospect, what if tomorrow you were no longer here or you were injured and unable to go to work every day? How would your family handle the loss of income, or worse, if you unexpectedly passed away? Let’s talk through that scenario and see if there is anything we can do help your family through that difficult time and lessen the financial burden.

“After all, we both know that your family depends on you greatly as a mother and wife, and they also rely on your income for their everyday needs. This is especially critical if they are dealing with the emotional loss of your absence. Let’s see if we can eliminate the financial pressure for them.”

Generally, McNeely said, this conversation leads to a conversation about life insurance and disability income insurance.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected]. 

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Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].