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Planning for the Female Financial Perspective

Dee Costa, Sr. VP, Business Consultant
Josh Ver Hoeve, VP of Annuity & Life Sales

Women may represent the single largest business opportunity over the next several decades.  Here is just a sampling of why:

  • Women control an ever-increasing percentage of the personal wealth in this country – with estimates as high as $14 trillion – 51% of the current total
  • 67% of the nation’s assets are anticipated to be in women’s hand by 2020
  • 40% of women out-earn their husbands
  • Women continue to statistically outlive men
  • Womens’ financial lives are also often more complex than mens’ as they may need advice surrounding their roles as primary caregivers for not only their husbands but also their aging parents.
  • As women age, their longer life spans leave them more susceptible to suddenly taking on additional financial responsibilities later in life
  • 73% of women report being unhappy with the financial service industry
  • 87% say they can’t find an advisor with whom they can connect

Taking these facts into consideration, the industry should stop treating women as a small niche market that it could possibly serve. They are the market and their presence will continue to grow. In fact, according to statistics, women already make 80% of the purchasing choices in the current market.

The greatest risk women face in retirement is LONGEVITY! Longevity means that women have a higher risk of suffering debilitating illnesses, spending more on healthcare costs, and have a higher risk of ending up in skilled nursing care. Living longer means that women need to make sure that their money lasts as long as they do.

To help women plan for retirement, we need to help them grow and protect assets, as well as account for the traditional risks, such as inflation, taxes, and market risk. There should also be a focus on longevity risk, including planning for health care costs and the likelihood of needing some form of Long Term Care at some point.  Remember the goal of most women, is to never be a burden to their children.  If we can help them put that fear and worry to rest, we will allow women to live their BEST lives in retirement.

One of our best product recommendations that addresses this concern is an Asset Based LTC/Life policy or Asset Based with Chronic life insurance policy. These policies can be designed to protect women from many of these risks while adding additional protection benefits when a spouse passes.

Take a look at Asset’s new client approved brochure called Understanding The Importance of Long-Term Care and call the Asset Life Department to have us run an illustration for you at 888-303-8755.

1. Ryan Gorman. Business Insider. April 7, 2015. “Women now control more than half of US personal wealth, which ‘will only increase in years to come'”.

2. Judy Paradi and Paulette Filion. Strategy Marketing. 2016. “Financial advisors are failing women: What female clients
really want and how to change the dialogue”

I would say that it does not always make sense to sell a guaranteed income annuity instead of an LTC policy, however we find that many times that is a client’s best option because there is NO medical underwriting involved for these benefits. Not to mention, just about every client will need a guaranteed lifetime income, why not sell one with home health care benefits?

If you do have a separate life case, I would like to draw your attention to the F&G Safe Income Plus. The Safe Income Plus is one of the best income products on the market even without the home health care benefits, and they will also double your income for home health care much like North American. They will have higher guarantees than North American and work really well for single life guaranteed income cases. Please also note that F&G’s product and HHC benefit is available in many more states, such as California!