By Rachel Williams Women are failing to put adequate protection in place, according to new re...
By Rachel Williams
Women are failing to put adequate protection in place, according to new research from the Fair Investment Company (FIC).
The research suggested that couples do not consider how the family will survive if the primary carer is unable to look after the family, neither were they aware of the cost of childcare.
According to the research, 55% of current term assurance policies are held by males, with just 23% held by females. 22% are held on a joint life basis.
Experience was similar for critical illness. Males are buying 50% of policies with the remaining half split equally between women and joint policies.
David Doulton, co-director of the FIC, a provider of ethical life and pensions products said that it was difficult to see why take up rates among women were less than half of those seen among males.
He said: "There should be no difference in life cover take up rates between men and women. Women need cover as much as men. In many cases the impact on family life of death or illness of the woman would be more severe than if the man is uninsured."
He continued: "Quite often couples or families decide to take out a policy on the male life simply because 'his' work is more valued than 'hers'. If they were to do the sums as to how losing him or her would affect their finances, they would see the need for both to be covered."
FIC concluded that the likely cause of this trend was that life assurance was not being adequately explained or marketed to this sector.
Doulton said: "The way in which modern lifestyles are changing, it is crucial that we as an industry put the right messages across that will prevent women from financial disaster."
