Scottish Widows has claimed that a lack of financial protection among women is leaving families in a precarious situation.
It found that 31% of women have life insurance and only 7% have critical illness cover. This is despite saying that their households could only pay the bills for seven months should they not be able to work or die.
34% of women say they’ve not taken out life insurance because it’s not a financial priority or they don’t think they need it. 9% of women without critical illness cover say they’d rather take the risk of not having it than take out a policy.
On top of any day jobs, women spend at least 23 hours a week on childcare and chores such as school runs and housework – tasks which they believe their families could not afford to pay for should the worst happen to them. 76% of women also say their household would struggle to complete everyday responsibilities or pay household bills if they were to fall ill or pass away.
Lack of planning is leaving many families in a vulnerable position. When asked how they’d cope should they or their partner not be able to work for six months, 25% of women said they’d rely only on state benefits. And 54% don’t have the protection of a will or guardianship arrangement in place for their families. In addition, fewer women than men think their household could survive on one income if their partner died or was unable to work. 51% say their family could live on one income, compared with 65% of men.
Scottish Widows said that with a new Bereavement Support Payment system now in place, which may result in a significant reduction in the period over which support will be available, it’s more important than ever for women to review their financial protection needs. This is especially the case for cohabitees, who still don’t qualify for bereavement benefits. Women in cohabiting relationships who take out or already have financial protection, should ensure it’s set up correctly so that, should the worst happen, the right monies go to the right people as quickly and tax-efficiently as possible, the insurer said.
While 81% of women place importance on insuring their possessions, only 33% do when it comes to insuring their own life and health.
In addition, 68% of women who are not saving for the long term are not because they can’t afford to, or because there’s always something else they need to spend money on.
Jackie Leiper, protection director at Scottish Widows, said: “One of the most important things a woman can give her family is security, but financial protection is still too far down the priority list because women simply don’t recognise their own value.
“It’s crucial that everyone – no matter what stage of life they’re at – considers whether they have the right protection in place to ensure their loved ones aren’t left coping with financial strain on top of emotional trauma if the worst were to happen. And that applies to working women and full-time mums alike. We all need to recognise the monetary value of women’s time and effort in the household, and to safeguard it accordingly.”