Women need life insurance too, not just men!

Underinsurance is a problem affecting all Australians. But women in particular are failing to protect themselves financially from the consequences of bad health.

Once upon a time life insurance was something you only considered for the main breadwinner. And with low workforce participation rates for women, that was usually the husband.

These days you would probably expect a more even balance. But you might be surprised by how little things have changed.

According to Rice Warner Actuaries, women make up only 15% to 20% of insurance cover. That’s despite making up 45% of the workforce.

And the gender gap for life insurance Australia wide doesn’t seem to be closing – in 2007 only about 1 in 4 insurance policies taken out were for women.

This is despite the fact women now earn 92% of male incomes – giving Australia one of the smallest gender wage gaps in the world.

It also suggests that the unpaid contribution of women, who are typically more likely to be primary carers for children and/or elderly relatives, is often ignored when it comes to insurance.


Single Women

Social trends indicate that women are staying single for longer than ever.

According to the Australian Bureau of Statistics (ABS), the median age of women marrying for the first time increased from 23.5 years in 1986 to 28 years in 2005. They also estimate that 26% of females will never marry.

This means more single women are earning significant incomes, and are often solely responsible for mortgages and other personal debts – putting the in a high risk category in terms of insurance.


Women with a Family

More women are combining primary care responsibilities with employment – demonstrated by the fact that 46% of women employed in 2003 worked part-time (as opposed to only 15% of men).

This highlights the growing need for personal insurance that covers both the financial and non-financial contribution women make to a household.

Insurance is also just as important for full-time home-makers, whose contribution is often just as expensive to replace if they get sick or injured.



Specific Types of Personal Insurance Available for Women

Select life insurance companies offer cover to meet the specific needs of women. These can include:
• Trauma Insurance
Trauma insurance is crucial for women in any life stage. It pays a lump sum benefit if you suffer from a medically diagnosed condition. The main types of medical conditions where a trauma insurance claim is made is heart attack, heart disease, stroke, and cancer.

With modern day technology available to detect early signs of cancer, treatment is often successful and there has been a much higher rate of survival. Trauma insurance can help pay for costly medical bills associated with treatment, and other costs like travel to and from treatment centers, alternative therapies, bills and living expenses.

• Trauma Cover with Baby Care Option
This type of cover provides cover for additional trauma conditions with benefits to help a family cope with the financial and emotional stresses of pregnancy complications. These can include things such as Complications of Pregnancy Benefit, Congenital Abnormality Benefit, and Death Benefit.

• Home-maker TPD
This type of cover is popular with women who are not in full-time work as it provides a lump sum of up to $1.5 million if the insured is permanently unable to perform normal domestic duties.

• Own Occupation TPD
For women who take time off work with maternity leave, some life insurance companies will allow the insured to retain their TPD definition even if the maternity leave is extended beyond 12 months.

• Child Cover
When children get sick or injured, it’s often their mother who takes the responsibility of looking after them. If that means taking time off work, this can increase the financial burden of childhood illnesses.

Some insurers offer cover for children over two years, and it is often premium FREE when added to a parents policy. It pays a lump sum if a child dies suffers one of a list of trauma conditions – helping a family cope financially during an already difficult time.

• Life Insurance
Life insurance pays a lump sum to your beneficiaries or your estate if you die. If you have any debt like a mortgage, or personal loans, life insurance is a must. Getting a number of life insurance quotes helps to ensure your financial burden isn’t passed onto your loved ones during a time of grief. Their financial future is secure, even if you are not there.

• Income Protection Insurance
Income protection insurance pays up to 75% of your salary from personal exertion should you become ill or injured and cannot work. Benefit payments are made after the selected waiting period, usually 30 days, however some waiting periods can be longer depending on your policy.

Sometimes called sickness and accident insurance, income protection insurance ensures your bills and daily living expenses are paid while you focus on recovering. You need to work at least 20 hours per week to be eligible for this type of cover, making income protection insurance suitable for part-time mums.

1 ‘Australians at risk’ – TNS/ Rice Warner, August 2006
2 OneCare policies written in 2007 by ING Life Limited
3 ‘Australian Social Trends, 2005’ – Australian Bureau of Statistics
4 ‘Australian Social Trends, 2007’ – Australian Bureau of Statistics
5 ‘Australian Labour Market Statistics, 2005’ - Australian Bureau of Statistics