Number of insured women falls by almost 40% in 12 monthsThere has been a drastic change in the number of women with financial protection such as Critical Illness Cover, Life Insurance and Income Protection. A decline of 37% means that almost two thirds of households are at financial risk.

49% of women said they had taken either Critical Illness Cover, Life Insurance or Income Protection in a 2016 study by Aegon. 12 months later and new research from Scottish Widows shows that:

  • 31% have Life Insurance
  • 7% have Critical Illness Cover

Further to this, a worryingly high number of people prioritise protection on possessions over their own wellbeing and the financial security of their family. 33% of women responded that they think taking out personal insurance is important, whilst 81% feel the same way about insuring household items.

Why are so few women insured?

For some, insurance is simply not important. Of the people who have not invested in health, life or income cover:

  • 25% believe that government benefits will support their family if something happens to them
  • 51% say that their partner or spouse’s income will cover the costs of living
  • 34% do not believe they need insurance and do not consider it to be a priority
  • 9% claim that they would rather take the risk without Critical Illness Cover, than pay for a product they may never need to use.

Unforeseen realities

Of course, nobody expects to be involved in an accident or be diagnosed with a serious illness, so it can be easy to say “it won’t happen to me” and brush the issue aside. However, parents need to think a little differently.

For mothers, an average of 23 hours each week is spent doing household and childcare chores. 73% of respondents said that their household could not afford to cover those tasks if they were no longer able.

69% said that they do not have in plan in place to rectify that; while 54% have not made a will or guardianship plan, leaving their children and family in a difficult position, should the worst become reality.

The advantages of planning ahead

No-one plans to fall ill or be unable to take care of their children, but unfortunately, it does happen. Whilst insurance policies cannot magically rectify a situation, having a financial buffer and the guarantee of financial assistance can ease the stress somewhat.

Similarly, having a will in place will help loved ones to make sense of your wishes and ensure that your family is taken care of according to your requests.

If you die unexpectedly, a financial plan which incorporates insurance and a guardianship plan will ensure:

  • Your money and assets are distributed according to your wishes
  • Dependents will be taken care of as requested
  • Your family will be covered financially
  • Loved ones will not have to worry about immediate expenses at an already emotional time

If you fall ill and are unable to work or take care of your family for a period of time, insurance will:

  • Cover living costs, including bills and the mortgage
  • Ease the financial pressure put on your family from the loss of earnings
  • Help with medical costs and equipment needed whilst you cannot work

Underestimating the impact you have on your family unit can have unforeseen consequences. It is always advised to take out protection against situations which may affect your family’s ability to live comfortably.

Both insurance and legal paperwork, such as a will and guardianship plan, will keep things running smoothly and help your loved ones both emotionally and financially at a time they need it most.