Men financially value their lives twice as much as women, especially for matters relating to life insurance, even though the death of either individual will impact the family equally. Such instances are even more prevalent in households where the man is the sole earner, while the woman is a primary caregiver. This fact has put the life insurance gender gap in the spotlight.
Individuals purchase life insurance that is 5 to 10 times more than their income. However, how does one quantify the contributions of a stay-at-home mother? What would be a suitable sum for life insurance? Let’s find out.
Two Ways to Bridge the Insurance Gender Gap
Buying Insurance for Both Partners
One of the first actions for gender gap narrowing involves buying insurance for both partners.
Relying on employer-provided life insurance contributes to the gender gap as it does not cover the spouse. Mostly, men are the sole earning person in a home, and stay-at-home women do not consider getting a life insurance policy, this widens the gender gap in insurance.
Hence, purchase your life insurance to bridge the gap.
Getting the Right Amount of Coverage
Another strategy for narrowing the gender gap includes ensuring that the insurance policy covers the family’s financial requirements. Rather than looking at it from a singular income-driven perspective, you can have a holistic view of keeping the debts and other financial liabilities in mind. One must also consider other obligations, such as the number of dependents.
Naturally, deviating away from the traditional income-focused insurance coverage addresses the issue of insurance for the stay-at-home parent. Even if they do not make any income, their life insurance feeds to their family’s overall needs.