A recent study undertaken by Royal London found that men in Ireland were 65% more financially valued than women based on the gap between their levels of financial protection.
The study examined the value of life cover and specified serious illness cover put in place by men and women between 2015 – 2019. It did not include mortgage-related life cover for the protection of dependents.
The results of the study showed that women took life cover for an average amount of €179,604 compared to men at €297,022 for the same policy.
The study’s analysis of specified serious illness cover also found a 27% gap between men and women, with men insured for an average of €80,096 and women for €63,036.
The research team posed that while the pay gap between the sexes might contribute to the discrepancies, the role of a stay-at-home parent is typically undervalued with many not taking sufficient, or any life cover at all, despite a previous study showing the replacement cost of tasks carried out by a stay-at-home parent to be in the region of €44,000.
The study’s findings are consistent with general trends around discrepancies between men and women in terms of salaries, savings and particularly income in retirement. One study from the Economic and Social Research Institute found that in retirement, an Irish woman’s weekly income is €153 less than her male counterparts.
The Royal London study found that in the last five years, there had not been vast changes to the amounts insured for life cover, which pays out a lump sum if the policy holder dies.
Typically, the amount of life cover taken reflects the policy holder’s own situation and is designed to provide financial protection for the policy holder’s dependents or beneficiaries, such as covering living costs.
Similarly, Specified Serious Illness cover pays out a lump sum amount in the event the policy holder is diagnosed with an illness listed in the policy terms. The Royal London study found that the average sum insured between 2015 and 2019 was €71,698.
While treatment for illness is improving all the time, Specified Serious Illness provides vital financial protection to cover the cost of lost income, living costs and the costs associated with medical treatment such as medicines, travel to appointments and additional therapies and care that may not be covered by the government.
Specified Serious Illness cover helps cover the average extra costs of dealing with an illness such as cancer, which are estimated at €756 per month, after an average income drop of €1527 per month.
Whether you would like to review your current Life or Specified Serious Illness policy to ensure it meets your needs, or want to discuss the benefits of taking a new policy, don’t hesitate to call a member of our team.
We have more than 20 years’ experience finding the right financial protection for individuals and families and would be more than happy to help you too. Call us now on 091 670 123.