John Ellis

When women under-insure their true value

BY JOHN ELLIS FINANCIAL ADVISOR

THE results of Royal London’s ve-year analysis of the life insurance market is in. e period covered was 2016 to 2020. e primary nding shows some continuing worrying trends in the insurance marketplace. According to the report, women appear to be underinsured by 64% when it comes to life insurance and 26% underinsured when it comes to serious illness cover

Karen Gallagher, Interim Head of Proposition at Royal London, explained: “ ese gures reveal signi cant discrepancies between the amount of nancial protection men and women put in place for themselves, which can have signi cant rami cations for people down the line.

“In the last ve years, the amount of Life Cover taken out by men is almost two-thirds higher (64%), on average, than the amount of cover taken out by women. e average sum assured on a life insurance policy (Term Assurance) is €177,409 for women and €291,162 for men.”

One positive outcome from the report , if it can be called that, is the gap has remained consistent in the past two years while in 2017 the gap was almost 83%.

Why are men more likely to insure their lives for a higher amount than women? e report reasons it may mirror gender stereotypes and/or the gender pay gap. For instance 98% of women more than men are stay-at-home parents and the role of the stay at home parent continues to be undervalued.

When people were asked to put a monetary value on the work of the stay at home parent the average gure suggested was €29,000 a year whereas when proper analysis is completed the gures is in the region of €49,000 a year.

People do not realise that so called “unpaid role” is very expensive to replace from current income ows and especially if the surviving spouse has to return to the workforce entailing added expenses including childcare.

According to the Royal London data, over the last ve years, the average sum that people insure themselves for has remained relatively stable, the average amount for Term Assurance being €234,285. is might seem like a signi cant sum but for a family with monthly outgoings of €2,500, this amount would only last approximately eight years.

Another way of looking at it is that it would provide over €29,000 per annum for approximately eight years, which is below the average annual income of €40,283 particularly where there are very young dependents or if the family continue to have ongoing rental/mortgage payments.

According to the Royal London data, when it comes to serious illness cover the average over the ve year period was €69,645 .

According to Karen Gallagher: “It’s positive that so many people are insured against serious illnesses.” While €70,000 might seem like a lot, as with Life Cover, people should ask themselves how far will this amount really go when they factor in all the day-to-day costs of running a home, and possibly the costs of dependents over a number of years.

Again, women underinsure themselves by approximately 26% less than men for Speci ed Serious Illness Cover, again suggesting the nancial input of the stay at home parent is undervalued as with the lifecover scenario.

With the introduction of the Gender Pay Gap Information Bill in 2019, transparency is being provided on the gender pay gap and incentivises employers measures to narrow the gap.

But at the family level the report encourages us to consider the nancial cost of replacing both partners’ contribution to the family even if one is a stay-at-home parent or not the primary earner.

Talk to your Financial Broker who will help you put plans in place to meet your unique set of circumstances and be aware if cover is o ered without a thorough Fact nd being completed with a follow up needs analysis report.

Maybe, over the Christmas period when you have some free time, allocate a period to reviewing your current plans and policies and make a new years resolution to provide properly for the family in the event of the unexpected.

john@ellis nancial. 086 8362633.

Urgent action needed to tackle domestic violence and give support to survivors

BY: DEPUTY KATHLEEN FUNCHION

SINN FEIN TD FOR KILKENNY CARLOW

KATHLEEN Funchion TD has said that the government urgently need to protect survivors of domestic violence.

Teachta Funchion made her comments to mark the beginning of the 16 Days campaign to highlight gender-based abuse and calling for the elimination of violence against women.

She said:

“ ere needs to be an immediate increase in funding for refuge places; following the failure to do so Budget 2022. We cannot continue to commend the many brave women who have spoken out to share their stories, who have raised awareness of violence against women and who are encouraging others to seek help and not act.

“And to the many workers and volunteers who dedicate their time to supporting survivors of these appalling crimes. Violence against women is never acceptable and as a society we must send the loud and clear message that we support survivors.

“However, government inaction is failing victims. We cannot talk about the scourge of domestic violence, but at the same time fail to provide resources that are urgently needed, which those in power are prone to doing. at must change.

“ e reality is we have a crisis in domestic violence refuges. is is not new. It has been the case for many years and despite desperate pleas from domestic violence charities, the government did not commit funding for a single additional refuge place in Budget 2022.

“Too many counties have no refuge spaces whatsoever, like neighbouring Carlow. And where refuges are in place, they often have far too few beds available. is means women and their children are often turned away when they desperately seek a place of safety. Data from Safe Ireland shows that, on average, seven women per day were turned away from a refuge during the Covid-19 pandemic. is is indefensible.

“I have raised this issue repeatedly with the government and they have failed to act. I am once again urging the government to ensure that they deliver the number of refuge places to meet unmet demand and to meet Ireland’s obligations under the Istanbul Convention.

“ e long awaited Tusla Review of the Provision of Accommodation for Victims of Domestic Violence has yet to be published by the Minister for Children. We urgently need to see that report and its recommendations.

“ e introduction of Domestic Homicide Reviews, as is already the norm in the north, is long overdue. e establishment of independent regional multi-agency reviews would be an invaluable tool to protect women. e previous government established an independent study on familicide and domestic homicide reviews which has yet to be nalised and published. Publication of the report needs to be expediated.

“Survivors of domestic violence must also have a right to access paid leave to attend hospital appointments, counselling services, court hearings and other vital appointments.

“Sinn Féin have introduced a comprehensive piece of legislation providing for ten days domestic violence paid leave. e government says it supports paid leave but has yet to deliver on this vital right for workers.

“We need urgent action to tackle domestic violence, to support victims and survivors, and to deliver the supports and protections too long denied to them.”