Every March, Women’s History Month offers a chance to honor the remarkable impact women have had on society. It also reminds us of the areas where equality is still out of reach. Much has been written about the gender pay gap—where women earn, on average, just 82 cents for every dollar earned by men. But one related issue that receives far less attention is the life insurance gender gap, a financial divide with serious long-term consequences for women and their families.
The Numbers Behind the Gap
Research from the 2021 Insurance Barometer Study by Life Happens and LIMRA reveals that just 47% of women have life insurance coverage, compared with 58% of men. This difference may not sound dramatic at first, but when applied to millions of households, the impact is enormous. Even more telling is that many women are already aware of the problem: nearly one-third of those without life insurance admit they need it, and about one in ten who do have policies say their coverage is insufficient.
Why Are Women Less Protected?
1. Income disparities directly affect coverage.
Life insurance policies are often tied to a person’s annual salary, with a common recommendation being ten times your income as an appropriate coverage amount. According to the Bureau of Labor Statistics, men earn an average of about $55,700 annually, while women average roughly $46,500. Using the “ten times” rule, women could end up with nearly $1 million less in protection than men. This means families may be far less financially secure if the woman is the one providing income or support.
2. Unpaid labor is undervalued.
Financial calculations frequently overlook the enormous contributions of stay-at-home parents or those who scale back their work hours for caregiving. More than one in four mothers stays at home with children, and countless others work part-time to accommodate family responsibilities. Yet the value of this unpaid labor is significant. Salary.com estimates that if stay-at-home moms were paid for the services they provide—childcare, cooking, cleaning, transportation, and more—their annual “salary” would exceed $178,000. Despite this, employer-sponsored life insurance typically only covers the working spouse, leaving a critical gap in protection for families that rely heavily on the unpaid contributions of mothers.
3. Financial literacy and confidence play a role.
Another factor limiting women’s access to coverage is financial confidence. Studies consistently show women scoring lower on financial literacy assessments. For instance, FINRA’s research found that women answered only 48% of financial literacy questions correctly, compared to 58% for men. This gap in knowledge, or sometimes just in confidence, can prevent women from exploring their insurance options or from recognizing how much protection they truly need.
The Real-World Impact
The consequences of this disparity extend well beyond numbers on a page. If a woman passes away unexpectedly, her absence often leaves not only an emotional gap but also a financial one that can be overwhelming for her family. Whether she was a primary breadwinner or the one managing the household, the cost of replacing her role can be staggering. Without adequate life insurance, families may struggle to maintain their standard of living, cover childcare expenses, or even afford basic needs.
This imbalance also reinforces larger financial inequalities. If women consistently carry less coverage, their families remain more vulnerable to financial hardship, further perpetuating cycles of instability. Closing the life insurance gender gap, then, is not just about fairness—it is about resilience and long-term security for families.
Moving Toward Equality
Awareness is the first step. Women need to recognize the full scope of their financial value, both inside and outside the workplace. Employers, financial advisors, and insurance companies also have a role to play in educating women, creating accessible resources, and emphasizing that coverage is not just for income earners but for anyone whose presence is central to a household’s stability.
Closing the gap will also require challenging outdated assumptions. Caregiving and household management should not be dismissed as “non-financial” contributions. By reframing these roles as essential economic assets, families can better understand why adequate insurance is so critical.
Final Thoughts
Life insurance is more than just a financial product—it’s a safeguard that protects families during their most vulnerable moments. For women, ensuring adequate coverage is about acknowledging their indispensable contributions, whether through earned income, caregiving, or both. Addressing the life insurance gender gap means taking women’s worth seriously and securing a future where families are not left unprotected simply because those contributions were undervalued.
It’s time to recognize that equality extends beyond wages and into the very structures that support financial security. By closing this gap, we take one more step toward genuine financial equality and peace of mind for women and the families who depend on them.
