Over half of women have no money to cover income loss

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According to a November 2016 MoneyFacts.com article, a new study by insurance company Aegon asked women about their finances. It found that 51% of women would not have enough money to live on if they lost their income. More than a quarter (28%) of the women said that their greatest fear is the possibility of not being able to support their family financially.

Many women believe that they would need to rely on their savings. Around one in six (16%) said that they did not have savings, whilst another 16% said that their savings would not last for more than six months.

Many women in relationships cannot depend on their partner to pay all the expenses if they lose her income. Nearly half (49%) of households rely on two incomes to cover expenses. This means that if one partner loses their income through illness, accident or redundancy, then the household faces financial hardship.

The study points out that financial insecurity can be alleviated by taking out protection insurance such as life insurance, mortgage protection insurance, income protection and critical illness cover. Aegon found that 48% of women think that these protection products are too expensive. However, life insurance for a 35-year-old woman who does not smoke can cost as little as £7 a month. Premiums for other protection insurance products are reasonable too.

The cost of taking out protection insurance is a small price to pay for the peace of mind in knowing that the household expenses will be covered if you lose your income.

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