Women lag behind men in life insurance coverage

According to the study, working women who have life insurance only own two times their household income in life insurance coverage. Men, on the other hand, generally hold three times their household income.

That gap is surprising, according to MetLife, because 64 percent of working women are concerned about their families’ financial futures in the event of their premature deaths, versus only 52 percent of men who feel the same way.

The study also found that 46 percent of women who work full time have not taken any steps to determine their life insurance needs, and 56 percent of women cited in the study aren’t sure whether the life insurance they do have is adequate.

“With the increase in dual-income families and single women heads of households, as well as child and elder care responsibilities, many people may depend on a woman’s income,” said Graham Cox, vice president, MetLife Life Products Management, in a news release.

“While many male employees with life insurance are very likely to be underinsured given personal circumstances, the fact that female employees generally have even less coverage is disconcerting. Fortunately, there are some easy ways for employers to address the underinsured issue for all their employees.”

Close the gap

Cox offers several suggestions to help employees – both men and women – optimize the value of group life insurance programs and build stronger personal financial safety nets.

• Personalize benefits information and communications. Information should address the need to determine an appropriate amount of coverage on employees themselves as well as on their spouses or domestic partners. Direct certain messages specifically to female employees. Almost two-thirds of women surveyed in the study said that receiving personalized benefits information with cost information would make it easier to make decisions about their workplace benefits.

• Offer opportunities to buy supplemental coverage through the workplace. More than half of working Americans, or 52 percent, are now obtaining the majority of their financial and retirement products through the workplace – up from 46 percent a year ago. In fact, 52 percent of women in the study cited the convenience of buying voluntary benefits through the workplace as an important advantage.

• Send out a message about life insurance needs upon notification of significant life events, such as marriage, divorce, birth or adoption or the purchase of a new home. Employees should not only update their own coverage when these occur. They also should be reminded to reconsider their spouse’s or domestic partner’s coverage.

• Add features that make life insurance top-of-mind. Providing value-added features, such as will-preparation and estate-resolution services, can increase the overall value of the life insurance plan beyond a death benefit. Features are available pre-need for employees and upon-need for beneficiaries and executors.

“Working Americans are asking for education and advice,” Cox added.

“Helping employees gain greater understanding of their benefits options allows employers to address their employee loyalty and retention goals.” [[In-content Ad]]