America Today: What Makes Women Say "Yes"
They Trust Doctors More Than Financial Advisors
They Are More Likely to Insure Cars and Homes Than Lives
Bloomington, Ill., August 6, 2008 – As uncertainty swirls around the state of the economy, women are responding in different ways as it relates to the people they trust to help manage their lives and financial future, according to a new study from State Farm Life Insurance Company.
The Musts of Trust
It is no secret that today's women are paying closer attention to their finances and represent an ever-growing segment with increased purchasing power. What is overlooked, however, is how purchasing power is related to the development of more sophisticated relationships and inherent levels of trust with the professionals who assist women with health, wealth and long-term financial security decisions.
The landmark study offers an in-depth look at women's attitudes toward financial security issues and what women want from their professional service providers to develop the trust that leads to a business relationship.
El Musts of Trust Study found that while today's women are reporting high levels of confidence in handling their finances, the same women admit they are not really in control of their personal finances. In fact, according to the study, they’re waiting for major life events to occur before getting a grip on their spending, saving and life insurance planning.
Further, as financially assured as they claim to be, women have a trust barrier with the professionals who can help them manage their money. The study found that American women do not fully trust the professionals who can guide them through fiscal turmoil.
For example, women are trusting professionals of health more than wealth: doctors are inherently trusted by 79 percent of women, while just 36 percent of women feel the same way about their financial advisors. Thus, women are more willing to trust a doctor with their lives than a financial adviser with their money.
“Women are telling us that they distrust financial advisers and tend to wait for something significant to affect their lives before getting serious about their finances," said Susan Waring, executive vice president and chief administrative officer of State Farm Life Insurance Company. "Howwever, it is crucial for women to be aware and in control of their personal finances at all times, no matter what is going on in their lives. We’ve seen the economy take unexpected turns and women must be prepared for the unexpected.”
Musts of Trust Study Headlines
46 percent of American women claim to be extremely confident in the way they handle their household’s finances.
Dollars and Sense
El Musts of Trust Study found that while nearly half (46 percent) of American women claim to be extremely confident in how they handle their finances, less than four in ten (36%) inherently trust financial advisers and stockbrokers. During a time of economic uncertainty, women are going solo when they need the most help. Instead of reaching out to the financial service providers who can help them recover from any lost income, women are tackling their policies and portfolios on their own, which may set them up for failure, according to Waring.
This information concerns financial professionals who may see economic trends more clearly than the average American. Mary Quist-Newins, CLU®, ChFC®, CFP® of The American College, the nation’s leading financial services educator, commented on the study’s findings.
“Financial professionals and insurance agents are there to help guide individuals through their personal experiences,” said Quist-Newins. “These professionals have the necessary tools to educate women in planning today for tomorrow according to their individual and family needs.”
Quist-Newins also is State Farm’s chair for women and financial services and is a former senior financial consultant for a major financial services provider.
Trust by Service Provider
Additionally, when asked which service providers they had strong relationships with – where the professional went above and beyond his/her normal level of service – financial professionals ranked low. More than half (56 percent) of the women surveyed had strong relationships with their doctors, while only 12 percent developed strong ties with their financial advisers, and 16 percent with their insurance agents.
What are Women Waiting for?
As secure as female Americans say they are with their personal finances, there’s a barrier here: they’re waiting for major life events to occur before saying “yes” to taking action and gaining control of their finances. State Farm’s study reveals that American women would take more control of their money if they:
What are Women Paying for?
One product that all Americans should have settled in order to be prepared for life’s “what ifs” is life insurance. “Unfortunately, women believe that life insurance policies do not fit within their budget,” said Waring. “A policy that protects your present and preserves your future should not be disregarded.” Waring added that State Farm offers complimentary Insurance Financial Reviews that help in finding products that fit individual needs and goals.
Según el Musts of Trust Study, American women are insuring tangible goods but not their own lives. Why? They think they can’t afford it. So what do they insure?
“No one knows what tomorrow will bring,” said Waring, “but by being prepared for it with the proper life insurance policy, you can help safeguard your family’s future plans.”
About State Farm’s Musts of Trust Study
The State Farm Study was conducted by Kelton Research in 2008 using an e-mail invitation and an online survey. The Musts of Trust Study consisted of an online survey of 1,500 nationally representative American women over the age of 18. While the study focused on women, five hundred nationally representative American men over age 18 also were surveyed to produce a comparison on what it takes to win someone’s trust. For the survey of 1,500 nationally representative American women, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 2.5 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample. To view the complete survey results, questions and methodology, please visit www.statefarm.com.
State Farm Life Insurance Company
State Farm Life and Accident Assurance Company
Bloomington, IL
State Farm International Life Insurance Company Ltd.
Aurora, Ontario
For questions or more information, contact Carol Carey-Odekirk, Relaciones Públicas, al (309) 766-6781.
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State Farm® insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm's 17,000 agents and 67,000 employees serve 80 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 32 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com® or in Canada statefarm.ca®.