Tackling the Life Insurance Gender Equity Gap – FEDmanager

Tackling the Life Insurance Gender Equity Gap - FEDmanager

Women’s History Month serves both as a time to remember the contributions women have made to society and to assess the state of equity. In light of this, FEDtalk is drawing attention to an issue often neglected and underreported: the life insurance gender gap.

Though women place an equal amount of value on their lives as men, the gap in life insurance coverage persists even as income and domestic responsibilities evolve. By in large, women tend to carry less coverage than their male counterparts. This week on FEDtalk, the panel discusses life insurance considerations for women, trends in access to coverage, and the future of benefits.

Host Jason Briefel joins Alison Salka, Senior Vice President and Director of Research at Life Insurance Marketing and Research Association (LIMRA), and Shane Canfield, Chief Executive Officer of Worldwide Assurance for Employees of Public Agencies (WAEPA). LIMRA connects the financial services industry worldwide through research, consulting, and professional development that provides people with access to data, thought leadership, and solutions. Formed by and for federal employees, WAEPA is a nonprofit association that offers affordable Group Term Life Insurance coverage.

A consumer study LIMRA conducted in 2021 found that only 47 percent of women have life insurance coverage, compared to 58 percent of men. LIMRA is particularly keyed into behavioral finance, or the issues that prevent an individual from doing what they should do.

“If you ask women what they’re most concerned about, they’ll talk about household expenses or inflation—life insurance is not really top of mind,” noted Salka.

To produce the right coverage for federal employees and bridge the gap, WAEPA analyses data from LIMRA, the Office of Personnel Management (OPM), and the General Services Administration (GSA). Canfield underscores the importance of equity across the board, taking into consideration the differences among the civilian federal workforce rather than speaking to one form of consumer and the evolution of the American family with considerable consideration to COVID-19.

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“I think the way we consider life insurance in this country is outdated. Drifting away from gender norms around life insurance–which is generations old–the way men, women, and families have thought about it,” Canfield commented, “We need to do risk-based assessment at the family level.”

How can women close the life insurance gender gap? Salka suggests you consider your employment opportunities, assess your needs, and consult an industry professional to determine what coverage is best for you and your family.