Women are less likely to hold risk insurance than men with only 47 per cent holding some form of wealth protection compared to 57 per cent of men, research by TAL has found.
Research conducted by the life insurer has found women “significantly lag” behind men in holding each of the four forms of risk insurance whether it be life, disability, income protection or critical illness.
TAL also found that only 37 per cent of women have spoken about risk insurance with a professional adviser compared to 40 per cent of men.
“On the one hand these results highlight that women are willing to seek professional advice about their finances and life cover needs – a good start in bridging the life insurance gender gap,” TAL chief executive Jim Minto said.
“However, despite the take-up of advice and some recent improvements in the gender pay gap in Australia, these cover levels are way too low,” he said.
TAL also cited research conducted by Macquarie which found 69 per cent of women control their household finances and where men and women share financial decision-making, women commonly manage the regular budget.
“Women are key decision makers and as such are well placed to assess expenses and commitments and work out what is needed to protect their most important assets,” Mr Minto said. “They themselves need protection even if they are not the primary breadwinner.”
“Having the right protection in place for each partner in a household recognises that each member of a household plays an important role in supporting both essential daily needs and longer term aspirations,” he said.