The Great Wealth Transfer and the Global Growth of Women’s Wealth

In the next decade, the largest transfer of wealth in history will take place between Baby Boomers and their adult Gen X, Millennial and Gen Z children or grandchildren, according to research from Edward Jones, Next360 Partners and Morning Consult. The study shows that 48 percent of Americans plan to bequeath about $84 trillion in assets by 2045, calling this the “Great Wealth Transfer” by many.

Bank of America Global Research analysis expects $30 trillion of US wealth will be transferred to young women in particular, pointing out that women’s wealth is increasing globally. As this wealth transfer increases for women, gender parity in financial health remains.

Life Insurance Research and Marketing Association (LIMRA) Insurance Barometer Study 2023 shows that 44 percent of women, about 54 million people, say they need life insurance or more coverage. Nearly half, 47 percent, are worried about not having enough money saved for retirement, and 40 percent are worried about being able to save for an emergency fund.

LIMRA data suggest that lower confidence in life insurance knowledge may play a role; 27% of women are not comfortable with their personal finance knowledge, and only 22% of women say they are “very” or “extremely” knowledgeable about life insurance, compared to 33% of men who said the same. Sixty-one percent of women say they are interested in a life insurance policy that provides guaranteed income in retirement, but only 46 percent of respondents say they are aware of such a policy. Barometer survey respondents reveal insights on how women prefer to buy life insurance; 44% would look for life insurance online but buy from an agent or other professional in person, and the top social media site women use to find financial information is Facebook, followed by YouTube and Instagram.

This gap presents an opportunity for education and engagement with female consumers, according to LIMRA.

Bobby Powell, vice president of wealth management sales at iPipelinesaid life insurance marketing typically targets specific age groups but could expand to appeal to a wider audience.

“I think life insurance is moving more into that, where there’s more direct-to-consumer advertising, but it’s still focused on certain age groups, like senior life or final expense,” he said. Powell said. “This is usually a final expense, very specific term life insurance or what we would consider a simplified type of life insurance that is very easy to set up and underwrite. As this type of concept matures more, it should begin to target a wider type. public…”

Powell explained that technology and data analytics can help insurers analyze demographic trends and customer behaviors to better inform targeted strategies that meet market needs. Machine learning and AI tools have created an additional layer of predictive analytics.

“Over the past several years, the ability to forensically interrogate the life insurance process has grown dramatically,” Powell said.

Technology and digital solutions can also help demystify the process of buying life insurance and improve accessibility by speeding up and simplifying the process for consumers.

“There are no (technological) barriers to immediate processing of life insurance,” Powell said. “It’s really in all the support processes around it, because a carrier has to be able to underwrite that insurance policy and how they underwrite it, if it’s sold through an agent.”

With tools that can underwrite products at a faster pace, Powell explained, the process becomes easier for all parties involved – distributor, carrier, agent and consumer.