A new study from the US has shown a worrying disparity between the sexes in taking up life insurance policies.

The study, which is MetLife’s sixth annual Study of Employee Benefit Trends has found that working women are less likely to take out a life insurance policy and even those that do have policies which have a third less coverage than their male counterparts. This worrying trend from the US is likely to be replicated back in the UK, highlighting the importance of women getting advice about their financial legacy.

With the number of women going out to work and being the sole or primary breadwinner in their family the gap is a very real risk to many families. The survey conducted by MetLife was especially surprising given the the attitudes expressed by each sex when questioned. 62% of women were worried about their families financial security in the event of their death compared to just over 50% of men.

Another worrying finding in the survey was the amount of women who had not received adequate guidance as to their real needs for insurance. 46% of women had taken no steps to find out if their own insurance was adequate and 56% admitted to being unsure how covered they actually are in the event of an emergency.

Graham Cox from Metlife was quoted in a press release as saying:
“With the increase in dual-income families and single women heads of households, as well as child and elder care responsibilities, many people may depend on a woman’s income”

"While many male employees with life insurance are very likely to be underinsured given personal circumstances, the fact that female employees generally have even less coverage is disconcerting. Fortunately, there are some easy ways for employers to address the underinsured issue for all their employees." He added.

Cox though was upbeat about the prospects for ensuring women receiving the benefits they need. He highlighted a four point strategy to engage women specifically. He suggested that employers should personalise their insurance guidance for women and highlight their needs.

Secondly he argued that after a “life event” such as a marriage or birth the employer should encourage employees to consider their insurance situation and update their policies with their spouse or new children in mind.

He also suggested that employers make their staff aware of the added benefits of life insurance which go beyond merely a death benefit. All these things would:
“[Help] employees gain greater understanding of their benefits options allows employers to address their employee loyalty and retention goals. It's a win-win situation." said Cox.