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Women undervaluing life cover sums

Women undervaluing life cover sums

Category: Insurance

Updated: 23/04/2013
First Published: 22/04/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Women in the UK are insuring themselves for around a third less than men in the same age bracket, new research by Scottish Provident has found.

Women are more likely to place a lower monetary value on their life protection compared with men, with those aged in their 30s and 60s undervaluing the amounts they cover themselves and putting their family's financial future in jeopardy.

According to the pension provider, an average sum assured for life assurance for a woman in her 30s stood at £262,398 in 2012, whilst a typical male in the same age range had a total sum assured of £337,617.

Despite the gap between men and woman remaining considerably large, the amounts for which men and women insure themselves has showed some signs of improvement.

For example, in 2011, the average sum assured for life assurance for a woman in her 30s was £237,867, with a typical male in the same age range having a total sum assured amount of £281,554, reflecting increases of 10% and 19% respectively between 2011 and 2012.

Commenting on the findings, Jennifer Gilchrist, senior product development manager at Scottish Provident, said it was disappointing to see that the gulf between the average men and women's sum assured amounts had continued to widen.

"We may have succeeded in persuading more women to take out life assurance than before but these figures show they still don't have enough," she said.

"We need to consider how we reinforce these messages so that women truly understand their financial worth."

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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