Today, more and more women classify themselves as the breadwinners of their households. They’re earning more, and they’re often the primary financial decision makers. This makes women’s need for paycheck protection and personalized advice greater than it’s ever been.
Women may also be retiring later than the traditional age of 62. This means that those who are in their 50s may be looking at 20 more working years, so they may need paycheck protection even when they are in middle age.
Numerous studies have shown that women face serious challenges when it comes to retirement. According to the Women’s Institute for a Secure Retirement (WISER), the average 25-year-old college educated woman will earn about $500,000 less than her male counterpart over her lifetime. And a study by the Insured Retirement Institute (IRI) shows that only 30 percent of women have saved at least $200,000 for retirement, compared to half of men. Many take time out for caregiving, adding to their lost wages. Add to that their longer life expectancy, higher lifetime healthcare costs, and greater dependence on safety nets such as Social Security in older age, and you can see why women need paycheck protection.
Five Ways DI Brokers Help Women Secure More Financial Security
When it comes to marketing paycheck protection and other financial services to women, the smart broker knows there are fundamental differences in how men and women approach retirement planning. Women have different priorities, needs and habits than men, and connecting with them requires a different focus.
Below are five ways to change or adjust your sales strategy to successfully market paycheck protection to women:
- Understand their retirement mindset: For most men, retirement planning is a financial decision that’s about growing wealth. But women are more interested in the human factor – how that money can help them spend their golden years doing what they want, such as being involved in more volunteer work or spending more time with family. Women are also more inclined to consider the needs of the family unit as a whole, so the decisions they make about paycheck protection are more apt to focus on family security rather than merely building wealth.
- Focus more on building relationships and gaining trust: Relationships and trust are especially important to women. It’s not enough for you to be a good financial advisor. Women need to get to know you and what you’re all about before they’re willing to talk business. And you need to meet them where they are – in networking groups, on social media, and other places they’re most likely to make important connections.
- Custom-fit your products: Many women are overwhelmed with the amount and complexity of financial information available to them, and they don’t always know what to believe or how the information impacts them personally. Women also tend to be more conservative toward finances and less willing to take financial risks than men. Provide them with clear, straightforward information and advice about the investments that fit their unique needs and comfort level.
- Boost their knowledge and their confidence: Even as more women take charge of their family’s finances, they report lacking confidence in financial matters such as retirement planning. Women want to know the fine details of what they’re investing in and how it works, so give them what they need to feel confident about their decisions.
- Help them see the forest beyond the trees. Women generally understand the dollars and cents of household finances better than men, but their knowledge of financial products is often lacking. So while they’re better at seeing the details in front of them, they need help understanding the long-term bigger picture of paycheck protection and retirement planning.
Reaching out to female clientele will be more crucial than ever to your business over the next 10 to 20 years as women control more wealth. Take advantage of the opportunity by understanding their unique approach to retirement planning, striving for long-term relationships, and carefully educating them about the financial products that help them accomplish their goals.
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