An Opportunity to Support Women’s Financial Security

March 2025

Women’s roles in our society have changed over the past 50 years, with more women receiving degrees and joining the workforce. According to Women in the Labor Force: A Databook, Bureau of Labor Statistics (2023), women represented nearly half of the U.S. labor force in 2023, and the proportion of working women with college degrees has almost quadrupled since 1970. With more education and employment, women are becoming more financially independent.

Yet there remain income and wealth disparities. In 2023, a full-time working woman earned approximately 84 cents to every dollar a full-time working man earned. Compounded over time, this income disparity can have a significant impact on women’s overall wealth and influence their financial decisions.

LIMRA research has revealed that women are more likely than men to express financial worries, such as paying monthly bills, saving for emergencies and having enough money to retire comfortably.

These immediate financial concerns may contribute to their lower life insurance ownership. In fact, women are more likely than men to say they haven’t purchased the coverage they need because they believe it is too expensive (50 percent versus 45 percent). We often attribute this to a lack of knowledge about the actual cost of buying a policy — and that is likely part of it — but it also could reflect the fact that women, having less income and wealth, do not believe they can take on another financial bill even if it would provide future financial protection for their loved ones.

While the self-reported life insurance ownership gap between men and women was at its highest level in 2024, it does not mean women don’t understand the value of life insurance. Last year, 45 percent of women — representing 56 million women — acknowledged they had a coverage gap, and 4 in 10 said they planned to buy coverage within the year.

This is an opportunity for the industry to help women understand the important role life insurance can play in their overall financial well-being, and the many ways a policy can help alleviate some of their financial concerns. Today, just a quarter of women are confident in their knowledge about life insurance, and only 1 in 10 women believe they understand the various lifetime benefits permanent life insurance can offer.

Guidance Matters

The importance of working with a financial professional is undeniable. In 2024, just 35 percent of women said they were currently working with an advisor. But LIMRA data show life insurance ownership is significantly higher for women who work with a financial professional. Sixty-two percent of women who work with a financial professional own life insurance, compared with 37 percent of women without an advisor.

The good news is nearly 3 in 10 (29 percent) women are looking for a financial advisor. Our research finds more than half of Gen Z and Millennial women without an advisor (52 percent) are looking to engage one. This signals a significant opportunity for our industry as younger adults have the highest life insurance coverage gap but also express greater intention to purchase coverage.

Life insurers and financial professionals can help dispel some common misconceptions women have about life insurance that may prevent women from getting the coverage they need. Common misconceptions women have about life insurance include:

• “Life insurance is too expensive” (42 percent)
• “I can’t personally benefit from life insurance” (24 percent)
• “Coverage is only for final expenses” (20 percent)

Our industry also can demonstrate the many ways life insurance can support broader financial goals. Women’s top financial concern is having enough savings for a financially secure retirement yet less than half (46 percent) of women are aware that a cash-value life insurance policy could provide guaranteed income in retirement.

Misinformation is a big challenge in every aspect of our lives. Not surprisingly, misinformation about life insurance and finances can directly undermine efforts to help people make sound financial decisions, like owning life insurance.

Today, it is not enough to rely on personal conversations with clients. Websites and social media play a bigger role in how women seek information about financial products and services. Our research shows 9 in 10 women say they use the internet to do research about life insurance, which means we need to ensure accurate, easy-to-access information is available.

LIMRA recommends life insurers and financial professionals provide online tools (such as policy calculators) and educational resources (blogs, visual aids, etc.) that can help women better understand the different types of life insurance products as well as how these products would support their financial goals. Since a majority of women say they use social media to learn about financial topics, insurers and financial professionals must also supplement their website with an active social media presence that can help educate women and provide a platform where they can ask their questions more directly.

As we celebrate Women’s History Month, we should recommit ourselves to help women address their financial concerns and take the necessary steps to secure their future financial security. Women recognize their financial vulnerabilities and insurance gaps and are looking for advice to help them address their needs. By meeting women where they are and listening to their needs, financial advisors can help more women protect their families with life insurance.

March 2025   Subscribe

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