Why Women Prioritise Insurance While Men Lean Into Investing?

This post was originally posted on Planner Bee.

When it comes to household finances, women and men often lean on different tools.

Many women, whether flying solo or juggling family duties, view insurance as the bedrock of their financial plan. It helps protect their income, covers healthcare needs, and offers peace of mind for their loved ones.

Men, on the other hand, frequently lean towards investment vehicles, from stocks to mutual funds, with the aim of growing their wealth and achieving higher returns over time.

These differences aren’t simply a matter of personal preference. It reflects broader social and economic factors.

Women tend to live longer, are more likely to take on caregiving roles, and often prefer lower-risk options, which makes financial protection a priority. Men are usually more exposed to investment discussions, feel more confident taking risks, and are often driven by a desire to compete and build wealth.

Why women often choose insurance first

1. Desire for security and protection

Research from the Journal of Management Research and Analysis shows that women generally have a more risk-averse mindset when it comes to money.

Women tend to prioritise capital preservation and protection before chasing growth. By putting stability first, they ensure that unexpected expenses or income gaps won’t derail their financial security.

Ministry of Social and Family Development (MSF) Report’s in 2024 said that the gender pay gap has narrowed, from 16.3% in 2018 to 14.3% in 2023. This adjusted figure takes into account factors like parenthood and caregiving responsibilities, which women tend to shoulder more than men.

Women are also more likely to worry about saving enough for retirement or building an emergency fund. These concerns often stem from career interruptions due to childbirth or childcare. As a result, many see income protection as a way to close that financial gap.

Sun Life Survey found that while women in Singapore feel more financially secure than previous generations, challenges persist. Around two-thirds of Singapore women say that their financial security has improved compared to their mothers’ generation.

Still, more than half (55%) cite health issues as the main reason for making important financial decisions. In fact, 57% of women have foregone their own medical treatment to contribute to the costs of care of children or elderly family members.

2. Caregiving responsibilities

Women often take on the role of primary caregivers: for children, ageing parents, or ill family members. This makes them more aware of the importance of life and health insurance to protect those who depend on them.

According to The 2023 survey on Quality of Life in Singapore by the National Council of Social Service, 69.9 percent of informal caregivers in Singapore are women, with only about 30% being men.

Among these women, 42.3% percent are around 35 to 49 years old, usually at the highest earning ages of their careers, when they may cut back on work or leave their jobs to care for ageing parents.

The Family Caregiver Alliance also reports that around 66% of informal caregivers are women, many of whom manage full-time jobs while providing over 20 hours of unpaid care each week.

In this context, life and health insurance aren’t just optional extras. They’re essential tools for managing risk and protecting dependents from large medical or long-term care costs.

3. Longer lifespans and higher health risks

Global Health Estimates (WHO, 2023) show that women live longer than men but also spend more years living with disability. That gap makes planning for retirement, chronic care, and income protection a priority, and insurance the simplest way to lock in peace of mind.

Singapore women’s life expectancy is among the highest in the world at 85.2 years in 2022. The infant mortality rate, one of the lowest in the world, has remained at around 2 per 1,000 resident live births over the past decade. Maternal mortality ratio also remains one of the lowest in the world at 2.8 per 100,000 live births in 2022.

However, living longer often comes with added financial responsibilities in old age. This leads many women to prioritise long-term planning, including health, life, and retirement insurance.

The National Population Health Survey 2023 shows Singaporeans are adopting healthier lifestyles, with increased physical activity, reduced smoking, better mental health, and higher vaccination rates.

Screening for chronic diseases and some cancers improved, though breast cancer screening declined. The government continues promoting healthier diets through Nutri-Grade labelling, reducing sugar, sodium, and saturated fat intake. Public education, industry reformulation, and initiatives like Healthier SG aim to support long-term health improvements.

Read more: Insurance Plans For Women: What Are They, And Are They Necessary?

Why men tend to focus on investing

1. Greater appetite for risk and growth

Studies consistently find men more overconfident in markets, driving them to buy stocks and trade 45% more actively than women. They often chase higher returns, even if it eats into net gains through fees.

Men are more likely to choose a higher-risk investment strategy and show confidence in their investment ability, even when they have limited knowledge.

Male participants, especially those who are younger, unmarried, and currently employed, are more likely to self-manage their pension savings through available schemes.

2. Confidence in markets and wealth-building strategies

Social expectations and a tendency to credit success to personal skill push men towards growth-focused investments. This mindset encourages a more aggressive approach to wealth building, with less emphasis on protection.

Research shows that over half (52%) of men are more likely to be classified as confident investors, compared to 37% of women.

As an example, males and high-income earners generally take on more pension portfolio risk by investing through the Singaporean Central Provident Fund Investment Scheme (CPFIS).

3. Social roles and access to information

Only about 35% of men and 30% of women report having basic financial literacy, men often have more exposure to investment-related discussions. These may happen at work, among peers, or through media, which increases their comfort with investment tools.

Men are more likely to be the primary financial decision maker for wealthier households. This reflects broader social norms that associate men with investing.

In the context of Singapore, informal investors are typically male, in their mid-30s, with a tertiary education. Notably, 41% of these investors fall within the top one-third of income-earning households, indicating higher income levels and active investment engagement.

Read more: How To Ride the Artificial Intelligence Wave and Invest Wisely?

What this means for financial planning

Striking the right balance between protection and growth is key.

Insurance guards your present by covering unexpected medical bills or income interruptions, while investing builds your tomorrow through compounding returns.

When you lean too heavily on one side, whether it’s stock picks without an emergency cushion or a fortress of policies with no growth engine, you risk gaps that can derail your goals.

Both mindsets have something to teach each other:

• Insurance‑first savers can learn from investors’ focus on long‑term growth by allocating even a small slice (say, 5 to 10%) of their portfolio to a low‑cost index fund or diversified Exchange-Traded-Fund (ETF).
• Growth‑focused investors benefit from adopting an insurer’s caution. Setting aside an emergency cash buffer and securing basic income protection before deploying capital in riskier assets.

Read more: The Basics of Financial Planning: The Last Step is Key

Tips to integrate protection and growth

1. Start with a solid foundation. Ensure you have at least three months of living expenses in liquid savings or an income-protection plan.
2. Automate small investments. Set up monthly micro-investments into a broad-based market fund.
3. Bundle and review. Use a digital insurance platform, such as Planner Bee, to compare and purchase essential coverages in minutes, then schedule an annual portfolio check to rebalance both your policies and investments.
4. Adjust as you go. As your dependents or risk tolerance change, shift percentages between insurance premiums and investment contributions rather than overhauling your entire strategy.

Understanding the different financial tendencies between women and men can lead to more effective, well-rounded planning.

While women often prioritise protection through insurance, and men tend to focus on investment and growth, both approaches serve important purposes.

By recognising the strengths of each, individuals can build financial strategies that not only protect what they have today but also support their goals for tomorrow. The most resilient plans are those that combine stability with growth, tailored to one’s personal circumstances, responsibilities, and risk tolerance.