Nearly half (48%) of working women in the UK lack vital financial safety net
Just 10% of women in the UK with protection automatically receive this from their employer
This presents a real opportunity for advisers to help women take purchasing protection into their own hands
Protection is important to women when looking at job roles. Over two in five (44%) women asked their current employer about its provision as a workplace benefit, and nearly a third (32%) said it was a key decision-making factor. However, the importance women place on this doesn’t seem to be matched by employers who are often leaving women to take protection into their own hands. In many ways this is understandable given the breadth of responsibilities employers have in areas like pensions. And it’s clear that advisers play a key role in encouraging the take up of protection, with 15% of working women taking out protection following a recommendation by a mortgage provider or financial adviser.
Despite this, a clear gap remains between women’s financial priorities and their levels of protection. Nearly half (46%) of women believe it’s solely their responsibility to financially support their family should the unexpected happen, and without the safety net protection provides many would be forced to turn to their partner’s income, savings or in some cases government benefits. However, with over half (51%) of working women being the main breadwinner in the family, it’s likely that this would place significant pressure on their loved one’s income or savings.
Protection can take away this financial worry and allow families to continue making mortgage or rent payments, keep up with their day-to-day expenses, to maintain as ‘normal’ a life as possible while they focus on their recovery or coming to terms with the loss of a loved one. It could also protect people’s retirement saving for the future. One in four (24%) women view a workplace pension as the number one benefit an employer can offer, but time off due to serious illness can prevent pension payments being made. A protection policy can guard against falling behind on contributions and will help to ensure retirement plans are not put at risk.
Stephen Crosbie, Protection Director, Aegon UK said: “Women can no longer rely on their employers to automatically provide the financial safety net that protection provides. With women’s incomes becoming increasingly important to a family’s financial security there’s a need for more women to put their own plans in place. While the levels of automatic protection provision are surprisingly low, this era of self-provision presents a real opportunity for advisers to engage with working women and discuss the importance of taking out a personal protection policy.
“One of the greatest issues for advisers to tackle when it comes to self-provision is the perceived cost of protection, but when compared to other expenses a life insurance policy can cost as little as one bottle of wine a month, the cost of 5 days gym membership[1] or half the price of a takeaway[2]. Just £7.01[3] a month can ensure that a family is financially supported should the unexpected happen. There’s a clear gap in the market that advisers could fill, helping women identify their protection needs.
“Employers, specifically those that don’t offer automatic protection, also have a crucial role to play in ensuring that their workers’ needs are met and all employees are aware of the benefits they offer. Employers should prompt their employees to seek advice on protection policies, but there are a number of other steps they can take, from running workshops with advisers, to making protection a key topic during career and life planning discussions.”
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