According to a report by the Institute for Public Policy Research, a third of Britain’s working mothers declare themselves as the breadwinner in their relationship, rising to a quarter among 25-34 year olds. Despite this fact, millions of families still rely solely on the male’s protection policy, failing to recognise that their finances would equally be devastated without the women’s income.
Further research by Scottish Widows, shows that only a third of women currently have a life assurance policy, 8% have critical illness cover and only one in 20 have income protection insurance. This means that their families are exposed to potential financial problems in the events of unemployment, or worse, death.
So what is the reason why women aren’t insuring themselves? Are we, as an industry, not explaining the need for protection clearly enough?
The financial role for women in the family has evolved significantly in recent decades, yet very few see the significance of arranging robust protection that adequately supports their family and safeguards their future. Outside of employment, there are still two thirds of stay at home mums with children under the age of 18 who are primarily responsible for providing for their children.
That said, providers and brokers alike should emphasise that taking out protection does not only protect you from mortgage payments, but more importantly protects your family from losing their home. Likewise, families also need to recognise that just because someone doesn’t earn a salary, it doesn’t mean they are not worthy of protecting. Their contribution in the home is entitled to protection but unfortunately, many fail to realise this.