New trend emerges in life insurance

October 2006

It has been said that men are traditionally more diligent in ensuring that they had adequate life insurance coverage. Internationally, statistics speak of 64% of American women having no life insurance at all and those that do have a life insurance policy, carry about half the amount of coverage than men do.

According to 1Lifedirect, South Africa's first fully direct life insurer, it seems that South African women are bucking this trend. Lenerd Louw, CEO of 1Lifedirect explains: Since our inception in March 2006 we have noticed that nearly half of our client base is comprised of women. In fact, we have found that two-thirds as many women between the ages of 18-25 are taking out life insurance, compared to men in the same age group. We believe that the reason for this is because of the strength of our value proposition and the fact that women are less encumbered by broker-ties.

Louw continues: Women have definitely cracked the corporate glass ceiling and are now taking more responsibility, at a younger age, for their overall wellbeing compared to previous generations. They are buying their own cars and properties and are making investments to build nest eggs that will ensure their financial independence into their old age. With regards to life insurance, our experience indicates that women are nowadays also concentrating more on protecting the financial security of their family and fulfilling the financial obligations they leave behind. You are never too young or too old to take out life insurance.

In the past, many younger women, may have felt that they could not afford life insurance and that it had too many time implications. With the introduction of 1Lifedirect however, a 30 year old woman can purchase a R1-million life insurance policy for as little as R89 per month and this can be done over the phone within 20 minutes.

Women need life insurance protection for the same reasons men do, to ensure that whoever survives them will be provided with financial protection. Now that life insurance is so affordable, there is no excuse for not having a policy in place," concludes Louw.