Disability insurance is a smart idea for anyone who depends on a paycheck, but coverage may be especially important for women. If you’re putting together a disability insurance prospect list, make sure women have a place at the top.
Women Have Earnings Worth Protecting
On average, women still earn less than men. According to the Bureau of Labor Statistics, the median weekly earnings for men came to $1,302 in the fourth quarter of 2024, while the median weekly earnings for women was $1,083. Based on these figures, women earn just over 83 cents for every dollar men earn.
This doesn’t mean that women don’t have paychecks worth protecting. Although some pay discrepancy persists, many women are entering high-paying careers, including in medicine. According to the Association of American Medical Colleges, women have accounted for the majority of medical school students since 2019. Although men still represent the majority of physicians in most major specialties, the number of women is growing steadily and they may soon outnumber men.
Whether women are doctors, lawyers, accountants, business owners, or other professionals, they’re earning a paycheck that needs protecting.
Women Lack Financial Security
Despite gains in earnings, many women still struggle with financial security.
The National Council on Aging says just over half of women aged 25 and older do not consider themselves financially secure and nearly half lack an employer-sponsored retirement plan. The consequences of this are significant. According to the U.S. Department of the Treasury, women have less saved for retirement and are more likely to be poor during their retirement years compared to men.
The problem is compounded by the fact that women tend to live longer than men. According to the CDC, the average life expectancy for women is 81.1 years, while the average life expectancy for men is 75.8 years. Since women live longer and often outlive their spouses, they are more likely to need to pay for long-term care. The Administration for Community Living says women need care for an average of 3.7 years, while men only need care for an average of 2.2 years.
The takeaway is this: women need help obtaining financial security and preparing for retirement. Unfortunately, a disability that prevents them from working may detract from their capability to save for retirement. Disability insurance provides a safety net, especially when coverage is comprehensive and includes a retirement protection rider.
Women Are Often Providers for Children and Parents
Longevity isn’t the only reason women struggle with financial security – many women also provide for others. According to the Center for American Progress, there are 7.3 million single mothers in the U.S. as of 2023, representing four out five single parents in the country. For single mothers, a loss of income due to disability could be devastating.
At the same time, women may be supporting aging parents. Pew Research Center says 54% of Americans in their 40s are financially supporting both a parent and a child. While both women and men may fall into this “sandwich generation,” the financial strain is often especially challenging for women, who may already be struggling with their own financial security and retirement savings.
How to Help Women Obtain Paycheck Protection and Financial Security
Women need support obtaining financially security. Insurance brokers can help by providing access to disability insurance.
- Identify female disability insurance prospects. This shouldn’t be hard because there are a lot of them! Don’t overlook high-paying female-dominated fields, such as traveling nurses and nurse practitioners.
- Educate women on disability insurance. Show them how disability insurance works and the true impact of income loss.
- Appeal to their concerns. Find out what your female prospects are most worried about financially to show them how disability insurance can help. For example, if they’re worried about their financial futures and retirement, focus on how paycheck protection can protect their savings. If they’re worried about providing for others, show how disability insurance can ensure they continue to have income during a disability.
- Offer appropriate riders. A retirement protection rider is a good fit for anyone trying to catch up on retirement savings.
- Provide lower-cost options. For women who are already struggling financially, spending money on a pricey disability insurance policy may seem impossible. Avoid price objections by offering affordable disability insurance options that provide basic coverage.
Are you ready to help women secure disability insurance? Learn more about women’s DI needs.