The Gender Gap in Life Insurance

It is perhaps surprising that, although it has narrowed over the years, there is still a gender gap in many areas of society — especially in finances. A 2025 Pew Research study shows, for example, that women still make less money than men on average — earning 85 percent of what men earn. There is also a gender gap in life insurance, with men more likely to have coverage than women. In this guide, Bankrate’s insurance experts shine a spotlight on the data regarding the life insurance gender gap, to help you understand why there may be more of a need for coverage for women than you might imagine.

How does gender impact life insurance coverage?

For families, life insurance can be part of a robust financial plan, offering peace of mind for those with dependents who might be challenged if the primary provider were to pass away. But there’s more to the picture than that. In many families, the provider is not supplying all the monetary advantages to the family. A stay-at-home parent provides a value worth roughly $184,000 according to Salary.com. If the stay-at-home parent — traditionally the woman — were to die, there would be a significant financial loss, as seen in childcare, housekeeping and other costs.

That fact makes the data revealed by the 2025 Life Insurance and Market Research Association (LIMRA) study alarming. LIMRA found that only 48 percent of women say they have life insurance, as compared to 54 percent of male respondents. This statistic has persisted through the 15 years of the Insurance Barometer Study. 43 percent of women state that they need or need more insurance. That translates to roughly 52 million adults without this vital coverage. A 2023 survey from Mutual of Omaha backs up this data, showing that only 37 percent of female respondents had the life insurance they would need to protect their families.

The difference in how we value our lives

The life insurance gender gap may point to other inequities in our society. Studies have shown that women, of whom roughly 56 percent are in the workforce, bear the brunt of household duties, whether or not their partner is in the workforce. According to a 2024 report from the Gender Equity Policy Institute (GEPI), women spend 12.6 hours cooking, cleaning and doing other housework while men spend 5.7 hours. In addition, women spend twice as much time caring for children as men. All together, women on average do 2.2 times as much home and child-related work as men.

As GEPI notes, these inequities are based on longstanding cultural and social norms, and they show no signs of narrowing. They suggest, however, that obtaining life insurance coverage for women, especially when they have children, can make the difference between financial security and hardship in the event that they pass away, even when they are not the primary earner.

The income gap and life insurance

Because of the income gap, with women making 85 cents to every dollar earned by men, women may value themselves less from a financial point of view. This may extend to life insurance choices. Death benefits are often determined by the amount of salary a family is bringing in. A woman making less, or one who is a stay-at-home parent, may not consider their financial contribution to the family to be significant. However, as we noted above, the value of housekeeping and childcare is significant, averaging $184,000 per year, and when searching for the best life insurance, it’s clear that this amount should be taken into consideration.

No income should not equal no life insurance

While it may feel intuitive to think that life insurance is only to replace the lost income of a deceased family member, the reality is slightly more complex. Unless the surviving family members can afford an extra $184,000 a year in expenses based on the value contributed by a stay-at-home parent, life insurance for that stay-at-home parent can be a saving grace for those who remain. When comparing the cost of life insurance to the value, personal finance expert Laura Adams says, “Fortunately, term life insurance is more affordable than you might think. A healthy, 30-year-old can [usually] purchase a 20-year policy for $500,000 of coverage for about $200 per year.” So, even if you aren’t contributing directly to the family income, the work you do at home can be covered for an affordable price.

Lack of knowledge plays a role

The gender gap extends to knowledge of the life insurance process, which may be a barrier for women looking for coverage. The LIMRA study found that less than a quarter (23 percent) of women felt very or extremely knowledgeable about life insurance. In addition, three-quarters of female respondents overestimated the cost of life insurance, most of them by three to five times the actual amount. More than half (54 percent) admitted their estimates came from a “gut feeling” or “wild guess.” For these individuals, asking for quotes from a range of carriers might lead them to coverage that is more affordable than they think.

The truth is that life insurance doesn’t have to be expensive, especially when purchased by younger adults in relatively good health. Cheap life insurance options include low-cost term insurance, which provides coverage for a specific term of years, often 10 to 30. This can be an excellent choice for families with young children, as the coverage lasts until they are grown and out on their own.

Why do women need life insurance?

While women do statistically have a longer lifespan than men, it doesn’t mean there is a guarantee for a woman to make it through her golden years. If the woman is a business owner, mother, caregiver or financial contributor to the household, chances are that life insurance is needed. Should she pass away unexpectedly, does the family have the necessary funds to cover a funeral or potential outstanding medical bills? What about debt or mortgage payments? Will children’s lives be thrown into disarray due to a sudden loss of income?

All labor carries financial value, whether it is inside or outside the home. Traditional models of life insurance have used salary as an indicator of how much coverage one should plan for. However, the insurance industry standard is shifting toward acknowledging and recognizing the financial value of housework and childcare that is traditionally unpaid. Independent of the insurance industry standard, the reality is that the loss of someone who provides housework and childcare will create a significant financial burden on the surviving family members, making life insurance an important purchase.

How much life insurance should you have?

Considering the changing culture of life insurance evaluation, it can be challenging to determine how much life insurance you should have. The short answer is that you should have enough life insurance to cover the financial hardships that will be seen by your loved ones if you pass away, which can be calculated by going through your household expenses and figuring out your contribution.

Should both parents have life insurance?

If one parent’s death would put a financial burden on the other, both parents may want to purchase life insurance. Even if one parent stays at home, purchasing a life insurance policy could be worth it. As mentioned, stay-at-home parents contribute roughly $184,000 worth of work each year. If the stay-at-home parent were to pass away, replacing their household work would cost a significant amount of money. For this reason, most families would likely benefit from having life insurance coverage for both parents.

How we can minimize the life insurance gender gap

Cultural change seems necessary for this gap to truly close. However, there are things the everyday person can do to help close the life insurance gender gap. While these may seem like simple steps for a complex problem, they are a rational starting point:

• Understand what causes the life insurance gender gap.
• Consider life insurance coverage for both partners.
• Make sure you have the right amount of coverage for your family.

To get a real-world sense of what people are saying about the life insurance gender gap, we looked at the r/insurance forum on Reddit.com. One woman wrote in about life insurance for her sister, a 35-year-old stay-at-home mom. Should she have life insurance? If so, what kind? Here are a few of the responses:

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

The bottom line

Not only is the gender gap in life insurance entangled with the myth that stay-at-home work is not financially valuable, but it is tied to the gender pay gap. When women receive less on the dollar than men for similar work, the message can be that they are worth less financially. Despite these disparities and beliefs, the numbers help show that families do benefit from women having life insurance, whether completing traditional work with an income or not.

Frequently asked questions

• Should I buy life insurance for my children?
  

  Whether or not you want to purchase life insurance for your children depends on your financial goals and preferences. While child death rates in the U.S. are low, children’s whole life insurance policies are often quite inexpensive and can protect your child’s future insurability. Additionally, these policies often accumulate cash value. Your child could potentially borrow against the policy’s cash value in the future if needed.

• Does gender affect life insurance rates?
  

  Yes, with men often paying more for their coverage. Why is life insurance more expensive for males? Data shows that women live longer than men, which means that, with term insurance at least, insurers pay out fewer death benefits than they do for men. Because of this, life insurance for a woman is often slightly cheaper than for a comparable man.

• What should stay-at-home parents consider when determining how much life insurance to purchase?
  

  Life insurance is a crucial safety net for your loved ones, whether or not you contribute significantly to the family income. Stay-at-home parents may provide housework and childcare that equates to roughly $184,000 in services every year. When determining how much life insurance is needed, stay-at-home parents may want to consider how much childcare, housekeeping, cooking and other services would cost should they pass away.

• What is the best life insurance company?
  

  No single company always has the best coverage for every individual or family. To find the right company for your needs, consider the variables that are unique to your situation. What type of policy are you looking for, for example? Inexpensive term insurance is one option that may work, but it may also make sense to look at permanent types of coverage, such as whole life or universal life insurance. Also consider your priorities. Are you willing to pay a bit more to go with a company that has a reputation for superior customer service? Or are you looking for the most basic, affordable coverage possible? Do you want a company that has extensive rider options, or is simple coverage all you need? Working with a knowledgeable agent can help you find the coverage that is right for your specific needs and wishes.