Women’s Growing Wealth Means More Planning Needed

Life insurance as part of a well-constructed financial portfolio has become increasingly important as women continue to accumulate more economic power. According to LIMRA’s 2021 Life Insurance Barometer study, 44% of American women between the ages of 18 and 75 currently own life insurance. Among those who have life insurance, women are more likely than men to have both individual insurance and employer-sponsored – or group – insurance.

Drivers of Planning Needs

Women are ready to take advantage of the growing financial wealth in their lives and will need guidance to manage their wealth and achieve their goals. Financial advisors can expect women to benefit from a wide range of training options and products due to the different stages of their lives and the ongoing changes in their financial situation. According to LIMRA research, nearly four in 10 women have a financial advisor. Additionally, four in 10 women under 45 seek out a financial advisor, as do nearly one in five women over 45.

Wealth transfer: Women currently control one-third of US household financial assets, estimated at $10 trillion and growing. The value of wealth transfers to women by the end of the decade is estimated at an additional $20 trillion, providing ample incentive for financial advisors and insurance companies to create the solutions women need and want. ‘they are waiting.

Education and income: Women continue to outpace men in college enrollment and graduation, the Pew Research Center found. More women are postponing marriage and children, allowing more time for career development and wealth accumulation. Women who divorce later in life are increasingly choosing to remain single, and financial independence is becoming more common. Many women work past age 65, according to the Washington Center for Equitable Growth. It is therefore essential that counselors succeed in working with women of all generations.

According to LIMRA research, women of all ages say they need life insurance. Indeed, 80% of women aged 25-44, 75% of those aged 45-54 and 64% of those aged 55-64 recognize this need. Nearly half of women over 65 say they need life insurance.


Women are as likely as men to cite the need for five to 15 years of replacement income in the event of the death of the main earner. More than one in five say they are not sure how much life insurance they need.

Caregiving for family members: Six in 10 American women ages 18 to 64 say they currently provide at least part-time care to one family member or have done so in the past, reports the AARP Public Policy Institute and the National Alliance for Caregiving.

The responsibilities of older family members often include helping with activities of daily living, and these responsibilities can extend to managing the financial affairs of two households – their own and that of an aging family member. Caregivers are always aware that if something were to happen to them, their loved one’s care would also be at risk, making them more aware of the value provided by life insurance.

Caregivers are also a ready audience for conversations about a wide range of insurance products, including long-term care and disability insurance. The self-reported need for disability insurance increases as women age, from 36% to 61%. According to our research, four in 10 women aged 55 to 64 say they need disability insurance.

Financial advisors seeking women as clients should keep in mind gender differences in communication and decision-making styles. As the balance of financial influence evident in households continues to favor women, progressive and proactive finance professionals who work with women can expect their businesses to thrive.

About Hubert Lee

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