For immediate release
Information verified correct on October 29th, 2016
Men place a higher price on their life than women
- Aussie women seek smaller life insurance policies than men on average
- Double the number of men enquired on lifeinsurancefinder.com.au than women
- Women urged to value their worth equally or risk being underinsured
August 8, 2014, SYDNEY – Australian women are being urged to value their worth equally with men or risk their family’s financial wellbeing, following alarming insights by one of Australia's biggest comparison websites lifeinsurancefinder.com.au, which reveal women could be settling for policies worth 15 percent lower than their male counterparts.
The study analysed over 22,000 enquiries on lifeinsurancefinder.com.au for different life insurance product types over the past two years and found the average policy amount sought by men was $513,130, while women sought cheaper policies of $445,849 on average.
The research also found that women were looking to cover an average income of $77,762, while men sought income protection for a salary of $93,531. This 20 percent gap was slightly higher than the gender pay gap of 17.1 percent recognised by the Australian Bureau of Statistics (ABS).
Michelle Hutchison, Money Expert at lifeinsurancefinder.com.au said size does matter when it comes to life insurance.
“Women need to value their worth equally as men, regardless of how much they earn. If they don’t, it can hurt their family if something was to happen to them.
“It’s very hard to put a price on your life but having enough cover is a key issue with life insurance, because many people underestimate how much their family would need if they died.”
Life insurance policies are paid on the death of the policyholder, usually in the form of a lump sum cash payment.
Mrs Hutchison said a life insurance policy should provide enough to clear all debts including a mortgage, as well as provide ongoing income for dependents, fund children’s education costs and cover funeral costs regardless of whether the policyholder is a man or woman.
An average Australian couple aged 40 with children require life insurance cover of approximately 10-times annual earnings simply to repay debts and maintain current living standards, according to research firm Rice Warner.
Mrs Hutchison warned families should not restrict life insurance to the main breadwinner.
"Too often Australians focus entirely on the life insurance requirements of the main income earner and place lower value on the secondary earner, which is most often women.
“What’s more alarming was that there were more than double the number of men enquiring for life insurance than women (70 percent were men compared to 30 percent women), despite the fact that there are almost equal number of men and women in the workforce (79 percent men and 65 percent women according to ABS).
“However, our insights show that the trend could be turning, with the number of women enquiring for life insurance on lifeinsurancefinder.com.au has grown by 33 percent in the past year, compared to 30 percent more men.
“Despite this improvement, we still have a long way to go before women value themselves equally to men.
“Life insurance is not necessarily just about you, it’s about your family and their financial well-being if you were no longer around, so don’t risk being underinsured.”
For further information
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or creditcardfinder.com.au to find better (Source: Google Analytics).