Women underestimate their worth by 125 per cent

A Noble Oak study has found that women underestimate their life insurance value by 125 per cent, while men underestimate theirs by 19 per cent.

Women understand their life insurance value to be worth on average hundreds of thousands of dollars ($373,000), while men underestimate by about a hundred thousand ($97,000).

Noble Oak conducted a survey of 1,000 Australians to see what they thought their life insurance is worth compared to how much they might actually need.

Key findings of the survey include:

  • Women born between 1997 and 2012 underestimate the value of their insurance by $702,000

  • Men born between 1965 and 1980 overvalue themselves by $102,000

  • Men born between 1946 and 1964 overvalue themselves by $174,000

  • By occupation, real estate agents and rental hiring staff were the most likely to undervalue themselves when it came to life insurance by an average of $796,000

  • Financial services and insurance employees overvalued themselves by $102,000, being an outlier industry - no other industry employees overvalued themselves

  • Women tend to undervalue themselves through every salary bracket

  • In those earning under $40,000, women said their insurance should be worth $236, while men thought their insurance should be $486,000

  • Men earning less than $40,000 a year overvalued themselves - $51,000 more, while women undervalued themselves by $382,000

  • Once women start earning over $80,000 annually, their perceived life insurance value goes up over $330,000, but that is still $177,000 under their actual worth