Financial professionals know that each client requires a particular type of care, and when it comes to life insurance sales, men and women demand different considerations. If producers fail to properly engage the specific needs of female clients, they may limit their client base and fail to attract a large portion of the next generation of high net worth consumers. There is no better time to focus on the financial needs of the women’s market than Life Insurance Awareness month.
An opportunity for growth
Women are an increasingly large part of the high net worth pool. In fact, the majority of millennials with household incomes in excess of $100,000 are female, according to a Futurecast survey. These individuals are just entering the market for retirement planning and life insurance products, and they will become more important as they build their savings and develop more investable income.
Financial professionals who can engage these young female clients early will reap rewards for years to come, but connecting with these clients will require a specific approach. Women may have the same basic investment goals as their male counterparts, but there are some specific considerations that financial professionals should keep in mind when working with female clients.
The need for increased retirement income
Retirement expenses can strain even a high net worth individual’s savings, and women may need to be smarter about their retirement income plan than men. That’s because women generally live longer than their male counterparts, which can result in higher overall medical bills and cost of living expenses. Women live 5.2 years longer than men on average, according to the Centers for Disease Control
If unexpected medical issues crop up, those five or so years can present a substantial cost burden. The increased expense of women’s longer lives is compounded by the inequities in pay during their working years.
Despite the large percentage of millennial high net worth females, women continue to make less than their male counterparts. New data released by the Labor Department on July 21 demonstrated that women earn 81.9 cents for every dollar a man makes, on average. That disparity means that women will carry less money into retirement.
As a result, financial professionals must help female clients identify retirement income products that offer consistent returns. That should allow high net worth women to preserve more capital rather than spending their hard-earned money to maintain their lifestyle in retirement.