Category: Insurance

The gender pay gap – the difference between average earnings for men and women – shows women tend to earn less than men on average. 

Research suggests full-time working men earn more than full-time working women across industries and occupational categories. Yet, in addition to getting paid less, women are likely to be subject to a range of other factors that lead to further financial disadvantage. 

Factors The Disadvantage Women Financially

These social and cultural trends may both drive the pay gap and work separately to negatively affect women’s earnings relative to men. 

Superannuation Balances

Women on average have less money saved by retirement age. 47.3% of seniors state there is a gender gap when it comes to superannuation balances at retirement. Men receive $12 billion more in superannuation guarantees than women each year, and on average women retire with 36% less in super than men. 

At every stage of their working lives, women on average have less super than their male counterparts. Whilst the gap is slowly closing, equality is unlikely until 2122 at the current rate. 

One factor behind this gap is the fact women are more likely to move in and out of paid work as they provide caregiving for children and parents. Women are also more likely to be working in casual and part-time roles. 

Family And Caregiving

If you’re female, you’re probably doing more family and caregiving work than the males in your household. 

A factor that could partly be driving the pay gap could be family responsibilities that negatively impact women’s earning power. Women spend 64.4% of their average weekly working time on unpaid care work, compared to 36.1% for men. This means that for every hour men commit to unpaid care and domestic work, women commit one hour and 48 minutes. 

This is also a financial disadvantage in itself, as this cultural and social trend can lead to interruptions to a person’s work history. The fact that women tend to be responsible for caring, child rearing, and other unpaid domestic activities means they have less time to dedicate to a full-time and/or high-earning job. They also have more challenges when it comes to dedicating the longer hours needed for given occupations, due to these historically gendered responsibilities. 

Disadvantage In Divorce

Another potential financial disadvantage is the impact of a marriage breakdown, which can hit women harder than men when it comes to money. As many as 40% to 50% of marriages end in divorce. Frequently, women aren’t in charge of household finances and may not have a clear understanding of assets they own either jointly or separately. Poor financial literacy could impact how fair a share women get in the event of a marriage breakdown. 

As women are more likely to take time out of the workforce to help raise the family children and care for elderly parents, it’s even more important they’re compensated for any time they gave for caregiving activities if the marriage results in divorce. 

Undervaluing Of ‘Female’ Jobs

Yet another source of financial disadvantage for women is the undervaluation of jobs traditionally seen as ‘female’. Female-dominated occupations in healthcare, social services, and retail come with lower pay than those in ‘male’ industries like construction and mining. 

In addition, these so-called male industries tend to provide more discretionary payments like bonuses, commissions, profit-sharing, and shift allowances, unlike female-dominated industries. 

What’s more, if you’re a woman seeking to enter these male-dominated occupations, you could be facing strong barriers ranging from gender stereotyping during educational years, social expectations, and bias from employers.

Bias In Hiring And Pay

If you’re a woman, you are likely to be discriminated against in hiring, pay, and promotion decisions. Whether the bias is conscious or unconscious, it puts women at a clear financial advantage because they’re less likely to get the job, get promoted, or receive a pay raise or a fair salary. 

Behind this might be cultural biases and gender stereotypes about the type of work a woman is capable of doing. There could be negative preconceptions about how women might fit in a male-dominated industry, workplace, or occupation.

Lack Of Female Role Models And Mentors

Finally, a lack of women in leadership as role models and mentors could also lead to concrete financial disadvantages for females. As little as 17.1% of CEOs are women, and women occupy just 25.8% of board members and 30% of crucial management positions. 

Since women are more likely to suffer the burden of historically gendered responsibilities that need flexible approaches to work, decision makers could be acting from the belief that women aren’t as suitable for senior roles. As such, fewer females in leadership and mentoring roles could be making it harder to normalise women in senior roles and for women early in their careers to aspire to higher-paying jobs. 

Women Are Financially Disadvantaged

Women tend to end up more financially disadvantaged relative to their male counterparts in just about every area of life: retirement nest eggs, earning potential, unpaid work for family, and divorce. 

Behind all these outcomes are likely social, cultural, and economic factors that undervalue women’s contributions and promote bias in hiring and pay decisions. Correcting the imbalance will likely take a lot of time and effort, and both the private sector and government should play leadership roles in bringing about change, so women can enjoy a fairer share of the positive social and economic outcomes they undeniably contribute to bringing about.

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Suffice it to say, the coronavirus pandemic has shocked the world to the core. People realized how uncertain the future could be and how helpless they could be if they did not tread carefully. The next thing we know, the health crisis is taking our loved ones one by one until the death toll hits millions. 

Conversely, people started to realize the importance of some form of protection such as life insurance. This policy covers the insured in case of an accident and death, thereby protecting the surviving family members. It is a contract between the insurance company and the policyholder, guaranteeing an amount to the predetermined beneficiaries. 

There are two sides to life insurance that the pandemic created: claims and uptakes. On the one hand, COVID-related death claims are high. On the other hand, life insurance applications increased dramatically since the pandemic happened. The latter is just one trend, though. Below are the other emerging life insurance trends to know about.

 

• Omnichannel: Modes of interaction are changing

 

Policyholders want an omnichannel experience. Checking updates on the website or application or seeking answers to questions through a chatbot or social media representative, whichever is more convenient, are the epitome of omnichannel. 

Omnichannel means access to information whenever it is needed. Enhanced communication methods also mean bridging the gap between contemplating whether to buy and the actual decision to purchase a policy.

For the insurance company, it pertains to improved customer experience. For example, if a customer has questions about a life insurance product, he will contact the agent for answers. The more he knows, the better equipped he will be at comparing the products and deciding which to buy. So the proper knowledge is a driver of conversion.

Other than that, customers are checking digital platforms where the prospect insurance provider has a presence. The goal is to recheck for consistency and complementarity of life insurance product information. 

 

• Self-service: Alternatives are meant to empower

 

Digital adoption has become mainstream amidst the pandemic. Speeding up the application process is a valuable strategy today. This aligns with the consumers’ demand for self-service instead of the traditional sales and payment channels.

The 24/7 access has always been about ultimate convenience, accessing a portal anytime and anywhere the user pleases to. However, the pandemic compelled people to use touchless or contactless interactions with the brand.

Self-service options are digital alternatives that allow the prospects or the insured individuals to speed up the process from application to claim. Chatbots and digital assistants also give these individuals the impetus to learn more about the life insurance policies, their coverage, and benefits even before they contact an agent. 

These are part of the customer-facing workflow that should be as streamlined as possible. If not, the prospects are always ready to switch insurance companies that offer them wider accessibility.

Digital adoption is apparent across age groups, so offering virtual assistance is perceived as enabling individuals to engage and own the process. Voice-enabled assistants are conversational. They offer a more remarkable customer experience than some human insurance agents are not able to provide.

 

• Engagement: Health and wellness initiatives are embraced

 

Life insurance has static engagement because you get to use it when you have an accident, for instance. The minimal engagement is addressed by programs that target persistence and stickiness. For example, some policy companies offer rewards for healthy lifestyles as monitored through an enrolled wearable device.

Engagement aligns with the life journey of the insured individual while also increasing persistence, minimizing lapses, and ultimately, shifting mortality. For the insurance company itself, customer-led engagement is an excellent way to create opportunities for upselling and cross-selling life insurance opportunities.

Interestingly, health and financial benefits also drive engagement. Examples of the latter include discounts and rewards. These are program-tied value-added features rather than merely looking out for claims and payouts. 

Customers are also after the non-financial benefits. Some examples are estate planning, wellness coaching, retirement planning, and continuing product information. Another important feature is the risk-control consultation, which is perceived as a more proactive way to monitor the health status of the policyholder and determine any significant changes. The last one is paramount to ensuring timely interventions.

Bottom-line, individuals are looking for assistance for their policy needs, including gathering information. Therefore, they would rely on the first available option not just because of convenience but also time-sensitive reasons. 

The realization today is that when a policy can spell the difference between financial uncertainty and a more secure future, life insurance can no longer wait. But of course, virtually all of us want the latter. The pandemic is proof that we are not immune to uncertainties.

These omnichannel, self-service, and engagement trends scale the application process while also enhancing company-facing operations. With this said, it is safe to assume that these too may become fundamental to the post-COVID operation of the companies.

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1. Know the Market

Is your car going to be easy to sell? Is it a hot commodity? Or will you have to drop your price and search out additional avenues to sell it?

Here are a few general rules to answer these questions:

• SUVs are in high demand right now and will likely command higher prices than sedans.
• Family sedans will always be in demand by people who need basic inexpensive transportation.
• The sale of convertibles and sports cars is seasonal. Sunny weather brings out the buyers. Fall and winter months will be slow.
• Trucks and vans used for work are steady sellers and command competitive prices. Don’t underestimate their value.
• Collector cars will take longer to sell and are often difficult to price. However, these cars can have unexpected value if you find the right buyer.

Your first step is to check classified ads to see how much other sellers are asking for your type of car. Keep in mind that dealers will have different prices than private-party listings. Make sure to sort by your year, make, model and trim level of your car to see how many similar vehicles are currently on the market. These are what your vehicle will be competing with, so take note of their condition, mileage, geographic location and selling price so you can list your car at a price that will sell it quickly.

2. Price Your Vehicle Competitively

To come up with an effective asking price, you’ll first need to find out what the car is worth and how much other people are asking for similar cars. Appraise your vehicle on Edmunds and pay attention to the “Private Party” price. This figure is adjusted for a number of factors including mileage, condition, options, and the region in which the vehicle is being sold.

An alternate method would be to get an instant offer from Edmunds. All you need to do is enter the details of your vehicle and you’ll get a firm trade-in offer, good at participating dealerships for seven days. Use this offer as a baseline for your asking price, or if you’re comfortable with the offer, you can accept it and skip the rest of the steps below.

There are always some exceptions to the rules of pricing, so you should follow your intuition. And be sure to leave a little wiggle room in your asking price. Ask for slightly more money than you are actually willing to accept. If you want to get $12,000 for the car, you should list the car at $13,500. People tend to negotiate in big chunks ($500-$1,000) rather than small increments ($100-$200). That way, when a person makes you a lower offer, it will be closer to your actual price rather than below it.

You may have noticed how creative used car dealers get in pricing cars. Their prices usually end in “995,” as in $12,995. Are we not supposed to notice that the car basically costs $13,000? There is a lot of psychology in setting prices. A product that doesn’t sell well at $20 might jump off the shelf at $19.95.

On the other hand, as a private-party seller, you don’t want to look like a car dealer. You might want to take a simple approach and set your price at a round figure such as $14,000 or $13,500.

3. Give Your Vehicle ‘Curb Appeal’

When people come to look at your car, they will probably make up their minds to buy it or not within the first few minutes. This is based on their first look at the car. So you want this first look to be positive. You want your car to have “curb appeal.”

Before you advertise your car for sale, make sure it looks clean and attractive. This goes beyond just taking it to the car wash. Here is a to-do list to help you get organized:

• • Wash and vacuum the car and consider having it detailed.
  • Make sure your car is both mechanically sound and free from dents, dings and scrapes.
  • Consider making low-cost repairs yourself rather than selling it as-is.
  • Remove all unnecessary items from inside the car. That way, when prospective buyers take a test drive, they can visualize the car as theirs.
  • Wipe the brake dust off the wheel covers and treat the tires with a tire gloss product.
  • Thoroughly clean the windows inside and out and all the mirrored surfaces.
  • Wipe down the dashboard and empty the ashtrays.
  • Have all your maintenance records ready to show prospective buyers.
  • If the car needs servicing or even a routine oil change, take care of that before putting it up for sale.
  • Have your mechanic check out the car and issue a report about its condition. You can use this to motivate a buyer who’s on the fence.
  • Order a vehicle history report and show it to the buyer to prove the car’s title is clean and the odometer reading is accurate.

4. Where to Advertise Your Vehicle

Now that your car is looking great and running well, it’s time to advertise it for sale. Classified ads are the preferred method, not only for convenience but also for their wider geographical reach.

Here are the main markets for advertising used cars:

• Online classifieds: AutoTrader, Cars.com and CarGurus are effective and cast a wide net but can cost roughly $45 for a fully featured listing. Craigslist, Facebook Marketplace and eBay classifieds are free, but you’ll have to deal with a number of random callers — more than those on the paid sites.
• Social media: Use Facebook and Twitter to let your circle know you are selling your car. Ask your contacts to spread the word.
• Peer-to-peer sites: Companies such as Carvana, Tred and Zipflip connect buyers and sellers and are a growing presence in the used-car marketplace online. Each operates a little differently, so check the sites for details of their services. These can include car inspections, warranties and return policies for buyers.
• Message boards: Many online car forums have classified sections in which you can list your car.
• Word-of-mouth: Tell your friends, co-workers and family.
• The car itself: It’s old-fashioned, but putting a “For Sale” sign in the car window can still be an effective way to sell it.

One last word of advice about advertising: If you run a classified ad, be sure you are available to take phone calls — and texts — from possible buyers. Many people won’t leave a message for a return call. So answer the phone or reply quickly to a text — and be polite. Creating a good first impression is the first step in getting buyers to see the car in person.

5. Create Ads That Sell

Think about what you are telling people when you write your ad. Little words convey a lot. Besides the price, your ad should also include the year, make, model and trim level of the car you are selling along with the mileage, color, condition and popular options. It also helps to state why you’re selling the car since it gives the ad a more personal feel.

When creating “For Sale” signs or putting an ad online, you have an opportunity to show how eager you are to sell the car. Do this with the following abbreviations and phrases:

Must sell!: This term often means the seller is leaving town and needs to dump the car at a fire sale price.

OBO: This stands for “or best offer” and it indicates that you are willing to entertain offers below the stated price. This usually conveys you are eager to sell the car.

Asking price: This phrase also communicates the feeling that you will negotiate, but it is one notch below OBO on the eagerness scale.

Firm: This word is used to rebuff attempts to negotiate. It indicates that you aren’t in a hurry to sell the car — you are most interested in getting your price.

6. Showing Your Vehicle

Many unexpected bumps in the road can arise while selling a used car. These can be handled easily if you are dealing with a reasonable person. So, as you are contacted by prospective buyers, use your intuition to evaluate them. If they seem difficult, pushy or even shady, wait for another buyer. With the right person, selling a used car should be simple.

Some sellers feel uncomfortable having buyers come to their house to see the car. However, you can generally screen buyers on the phone. If they sound suspicious, don’t do business with them. If you don’t want people knowing where you live, arrange to show the car at a park or shopping center near your home. But keep in mind that people will eventually see your address when you sign the title over to them. Read this article on How to Safely Sell Your Car for more detailed safety tips.

Keep in mind that when you sell your car, people will also be evaluating you. They will be thinking, “Here’s the person who’s owned this car for the past few years. Do I trust him or her?” Buyers will probably be uneasy about making a big decision and spending money. Put them at ease and answer their questions openly.