{"id":958,"date":"2019-10-15T17:34:29","date_gmt":"2019-10-15T17:34:29","guid":{"rendered":"https:\/\/ladderlife.com/blog\/?p=958"},"modified":"2021-05-19T19:07:55","modified_gmt":"2021-05-19T19:07:55","slug":"gender-insurance-gap-really-confidence-gap","status":"publish","type":"post","link":"https:\/\/ladderlife.com/blog\/2019\/10\/15\/gender-insurance-gap-really-confidence-gap\/","title":{"rendered":"Is the gender insurance gap really a confidence gap?"},"content":{"rendered":"\n
A hundred years ago women couldn\u2019t even buy life insurance. Now, it\u2019s not only allowed \u2014 it\u2019s critical. In the 21st century, women live longer than men, are usually the primary caretaker of children and elderly parents, and are increasingly playing the role of breadwinner or co-breadwinner in the family.
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And yet, women are still less likely to have life insurance than men, even though their rates are often better<\/a>. Why is that? Studies have been quick to point out that women are \u201cless confident\u201d when making financial decisions. 62% less confident, to quote a 2019 \u201cWomen, Money and Power<\/a>\u201d study by Allianz Life Insurance Company of North America. At Ladder<\/a>, we are passionate about closing the $16T life insurance coverage gap affecting over 50M families in the US alone \u2014 and we\u2019re not going to achieve our mission if women aren\u2019t on board. So we took a look at our own data to try to understand what\u2019s really going on.<\/p>\n\n\n\n One of the first questions we ask when people visit our site is if they are feeling \u201ccurious,\u201d \u201cunsure,\u201d or \u201cinformed\u201d when it comes to life insurance. Women are less likely to self-identify as informed (30% vs 42% for men), but identifying as informed seems to mean more to them. \u201cInformed\u201d women are 26% more likely to accept their offer than \u201cinformed\u201d men. This reminds us of the famous Hewlett Packard study: men apply for a job when they meet only 60% of the qualifications, but women apply only if they meet 100% of them<\/a>. Dig deeper on that stat and you\u2019ll find something even more interesting: what holds women back from applying is not a mistaken perception about themselves, but a mistaken perception about the hiring process. In other words, they think they can do the job just fine, but they don\u2019t want to waste time with an employer that might not consider their application. Similarly, it\u2019s likely not women\u2019s confidence that needs to be repaired in insurance and finance. It\u2019s the process. Women come to Ladder<\/a> less likely to say they\u2019re confident, but leave more likely to accept an offer for a policy. That tells us we\u2019re doing something right. <\/p>\n\n\n\n Women notoriously multitask<\/a> their way through managing their jobs and their family\u2019s well-being. Even those who hold down full time jobs spend significantly more hours juggling housework<\/a> relative to men, and that mental load<\/a> leaves little time to research and manage complex tasks to completion. According to a 2014-2015 Prudential study<\/a> on Financial Experience and Behaviors among women, roughly a third of women feel a lack of time hinders them from moving forward with financial decisions. So imagine having to go through a months-long underwriting process for life insurance, involving fax machines, medical visits, and multiple conversations with an agent. Compare that with Ladder<\/a>, where someone can apply online and, if eligible, be covered in less than 10 minutes. Shortly after Ladder<\/a> launched, in September 2017, women only represented 23% of our life insurance applications. Two years later, 43% of applications on Ladder<\/a> are women and that number gets better every month. That\u2019s because Ladder<\/a> is \u201cEasy\u201d, \u201cQuick\u201d, and \u201cSimple\u201d \u2014 the top 3 adjectives women use to describe the product in reviews. Women are also more likely to accept their Ladder<\/a> policy the first day that they receive an offer (81% vs 76% for men), indicating that they are eager to get life insurance handled so they can move on with their day to day and have peace of mind. Back to that 2019 Women, Money, and Power study<\/a>: in 2016, 51% of women said financial professionals treat their male spouse\/partner as the decision maker. If you think that\u2019s bad, consider that this number jumped to 60% in 2019. Things should be moving forward, not backwards. If there\u2019s one thing women don\u2019t like, it\u2019s being patronized. Technology removes that negative bias and makes financial services more inviting to women. It also makes them more fair. At Ladder<\/a>, we drive the process through code, as much as possible. For women, and women of color especially, we believe online processes can mean more equitable treatment.
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1. Women are not less confident \u2014 rather, they\u2019re less likely to overstate confidence.<\/strong><\/h3>\n\n\n\n
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<\/p>\n\n\n\n2. Women are BUSY. They need products that don\u2019t waste their time.<\/strong><\/h3>\n\n\n\n
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<\/p>\n\n\n\n3. Women have to combat negative perception relative to their abilities in finance<\/strong><\/h3>\n\n\n\n
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