A recent survey revealed that many married couples may not be prepared for the death of a spouse, and women are more likely to be negatively affected than men. Nearly half of the women surveyed said the death of their partner would make it difficult to meet their financial obligations while less 40 percent of men said the same.
The disparity is worrisome, and indicates that women are less likely to have a life insurance policy on their partner that will offer support if that individual passes away. While 67 percent of couples have life insurance, it seems clear that men are better prepared for the death of their spouse than women.
This is particularly worrisome, because women are more likely to outlive their spouse than men. Financial professionals need to speak with female clients and couples to draft retirement and life insurance strategies that support people equally.
A continuing trend
Unfortunately, these statistics represent a continuation of trends that have been in place for some time. Women are not only underinsured when compared to men, but they often lack the same level of financial education. This puts them at a disadvantage for a range of financial planning tasks, including retirement planning, according to LIMRA.
To remedy this gap, financial professionals should address clients’ financial literacy concerns directly and provide educational materials that offer insight into the retirement planning process and smart money management. An educational approach typically leads to an increased recognition for life insurance and other financial planning tools.
The difference between genders’ understanding of financial issues exists, but it simply illustrates that many people of both genders are underinformed when it comes to financial matters. Financial professionals can become a resource for every client and give consumers the insight they need to successfully plan for the future.