Empowering Women Through Insurance: A Financial Advisor’s Guide
October 21, 2024 | 4 min read
Women face unique financial challenges throughout their lives, from earning less on average to living longer than men. As a financial advisor, you have the opportunity to guide your women clients toward financial security by offering solutions that address these challenges. Insurance products, including life, long-term care (LTC), and disability insurance, can play a crucial role in helping women secure their financial future.
Understanding the Challenges
On average, women earn 82 cents for every dollar men earn, which impacts their ability to save and invest for the long term. Additionally, 64% of women in the “Sandwich Generation” find themselves caring for both aging parents and children, leaving less time and resources for their own financial planning. These financial pressures, coupled with the fact that women tend to live 5.9 years longer than men, mean they must plan for a longer retirement with fewer resources.
While 60% of women own life insurance, it’s still significantly lower than the 70% ownership rate among men. This presents an opportunity for advisors to bridge the gap and help their women clients understand the importance of financial protection, especially as they may face higher healthcare costs in retirement.
The Case for Life Insurance
Life insurance isn’t just about preparing for the worst; it’s a powerful tool for financial flexibility and security. It allows your clients to accumulate wealth, access tax-deferred growth, and protect their loved ones. Women, whether they are the primary breadwinners, stay-at-home parents, or in other roles, need this protection.
Consider the specific challenges women face: they may take time off from their careers to raise children, face pay inequities, or have fewer retirement savings. Life insurance can help offset these disparities by providing a safety net that secures their family’s financial future in the event of illness, injury, or death.
Moreover, life insurance is increasingly accessible even for those facing health challenges. For example, breast cancer survivors, once excluded from obtaining coverage, can now qualify for life insurance through advancements in underwriting. Our recent case study shows that survivors and individuals at risk due to family history can receive coverage, as demonstrated by a 53-year-old breast cancer survivor who received a “Standard Non-Smoker” rating (Breast Cancer & Life Insurance PDF). This opens up new possibilities for women to protect their families, even after overcoming serious health issues.
The Importance of Long-Term Care and Disability Insurance
LTC and disability insurance are critical considerations for women. Given that two-thirds of Alzheimer’s patients are women, and women tend to live longer, they are more likely to need long-term care services at some point in their lives. LTC insurance can help cover these costs, reducing the burden on family members and allowing women to maintain their independence.
Disability insurance is equally important. Women are increasingly becoming primary breadwinners in their households, making it essential to protect their income in case of illness or injury. Many women underestimate the importance of disability coverage, but it can be a lifeline in maintaining financial stability during difficult times.
How You Can Help
As a financial advisor, it’s vital to offer tailored solutions to your women clients based on their unique financial situations. By understanding their needs, you can help them:
-Protect Their Income: Offer disability insurance to ensure they can maintain their standard of living if they are unable to work.
-Prepare for the Future: Help them understand the value of life and long-term care insurance, ensuring they are prepared for healthcare expenses and end-of-life costs.
– Maximize Retirement Savings: Show how life insurance with living benefits can supplement retirement savings and provide flexibility.
– Address Health Risks: Utilize advanced underwriting options to provide coverage for women with a family history of cancer or those who have survived breast cancer, as illustrated by the case studies of survivors and high-risk individuals.
[CLICK to download our Women’s Financial Needs guide for more insights]
At Regis Financial Partners, we specialize in helping advisors design comprehensive insurance strategies for women. Our concierge-style services are tailored to help you provide the best solutions for your clients. Contact us today to learn how we can help you design the perfect case for your clients. Let’s work together to ensure that women are protected and prepared for whatever life may bring.
Contact us at sales@regisfp.com or (786) 884-0090 for more information.
Sources:
1. Gender Pay Gap Widens as Women Age (http://www.census.gov/library/stories/2022/01/gender-pay-gap-widens-as-women-age.html)
2. Women’s Retirement Literacy Report (https://www.theamericancollege.edu/centers-of-excellence/center-for-women-in-financial-services)
3. Life Expectancy Calculator (https://www.annuity.org/retirement/planning/life-expectancy/calculator)
4. Life Insurance Statistics (https://www.forbes.com/advisor/life-insurance/life-insurance-statistics)
5. 2022 Alzheimer’s Disease Facts and Figures (https://regisfp.com/wp-content/uploads/alzheimers-facts-and-figures.pdf)
Note: This content is for informational purposes only and not intended as tax or legal advice. Advisors should consult with legal professionals to ensure these strategies fit their clients’ specific needs.
