New research shows that women are more likely than men to have some sort of life insurance, but it’s also one of the first things they’d ditch if their money situation deteriorated.
According to the NobleOak Life Insurance Index, which surveyed over 1,000 people, 58 per cent of women have life insurance, TPD cover, trauma cover or income protection insurance compared to 51 per cent of men.
The research also discovered both sexes would cut back on life insurance, as well as entertainment, holidays, health and beauty products first if they lost some or all of their income or financial support for an extended period of time.
“Despite women on average earning less than men, and making up the largest percentage of the part-time workforce, it’s evident they see the importance of life insurance and income protection insurance more than men,” said NobleOak CEO Anthony Brown.
“Unfortunately, accidents happen. It’s clear women understand that more than men and seek the security of life insurance and income protection insurance if a tragedy or serious accident were to occur.”
The research also found both genders are more likely to browse the internet and consult with family and friends before they reach out to a financial adviser.
When it came to purchasing life insurance and income protection insurance, 14 per cent of women and 26 per cent of men said they would use the internet.
When assessing the need for life insurance, the Index discovered both men and women believe a car accident, cancer and heart attack will most likely happen to them.
To help you better understand the different types of life insurances, we’ve pinched some explainers from NobleOak’s website.
Life Cover: Also known as term life insurance or death cover. This insurance cover pays a set amount of money as a lump sum when the insured person dies.
Income Protection: Pays an ongoing income if you can’t work due to a serious illness or injury.
Total and Permanent Disability (TPD) Cover: This cover provides a lump sum of money for sickness or injuries causing a permanent disability that stops you from working again.
Trauma Cover: Also referred to as critical illness cover, serious illness or recovery insurance, provides a lump sum of money if you suffer a medical condition or trauma that impacts on your life or lifestyle – such as being diagnosed with cancer or suffering a stroke or heart attack.