Women shun financial protection in spite of more responsibility
Women's shocking lack of financial protection is revealed by new statistics published this week.
A survey of over 2,000 UK adult women suggests that four in five (84%) working women do not hold income protection products which would pay them a regular income in the event of sickness or disability. A similar number of working women (78%) do not have critical illness cover in place.
An estimated two million UK women, meanwhile, admit to having no savings account in place. Experts say that both of these factors expose a huge proportion of the female population to the risk of financial ruin in the event of their falling ill.
More than half (53%) of women surveyed as part of the study have no life insurance in place, in spite of the fact that females are playing an increasingly central role in family finances.
Nearly half (46%) of working women describe themselves as the main earners in their family, while a similar number (44%) of all working women state they are responsible for making the family financial decisions and over three in five (61%) raise money discussions in the household.
The 'Women and Protection' report, carried out by Opinium Research for life insurer Bright Grey, echoes findings in a report carried out for AXA last year. AXA's survey of 4,000 women in 2010 found that just over at third (38%) had life insurance and only one in five (18%) critical illness cover. The research is particularly significant given the extent to which British households are increasingly reliant on women's earnings. Research commissioned by the government and published in 2010 suggests that 44% of women now earn at least as the same amount as their husbands and partners, while 19% actually earn more than them. According to AXA's research, 27% of women with dependent children claim to have sole responsibility for paying the family mortgage. This rises to 36% for women with no financially dependent children.
Roger Edwards, proposition director at Bright Grey, said that as earnings levels even up and the level of financial responsibility in households is more equally divided, women could be "putting themselves at risk" by not protecting their income, especially if a household is dependent on their salary.
He added: "Bright Grey is calling for women to have adequate financial protection in place for themselves and their families. By buying a protection product that pays out if they are unable to work due to a serious illness or disability, women can ensure they protect both their household income and current lifestyle."
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