Financial security plays a crucial role for victims of domestic violence when considering leaving an abusive relationship, according to the Insurance Information Institute (Triple-I). The organization highlights insurance as a vital component of financial planning that can aid survivors in moving forward.
Economic or financial abuse is often a hidden form of abuse within intimate partner relationships. It involves tactics to conceal information, limit access to assets, or restrict accessibility to family finances. Financial abuse is prevalent in 99% of domestic violence cases and spans all socio-economic, educational, and racial groups.
"Survivors struggling to get back on their feet may also be forced to return to their abuser. That’s why it’s so important survivors understand how insurance works and what a critical role it can play in gaining financial freedom and economic self-sufficiency," said Loretta Worters, vice president of media relations at Triple-I.
In recognition of Domestic Violence Awareness Month, Triple-I offers strategies for financial protection before and after leaving an abusive relationship. These include securing financial records, understanding one's financial standing, building a safety net, updating insurance policies, and maintaining good credit.
The National Coalition Against Domestic Violence (NCADV) reports that 10 million people are physically abused by an intimate partner annually. Economic dependence on abusers leads 85% of women who leave abusive relationships to return. The severity of abuse correlates with the degree of economic dependence.
"Home is frequently a dangerous place for survivors of domestic violence, and remote work exacerbates the circumstances due to the abusers' ability to further control," said Ruth Glenn, president of Survivor Justice Action (SJA) and former CEO of NCADV. She noted that tactics such as ruining credit are common forms of financial abuse.
Digital abuse is another tactic used by abusers. This includes reading emails, checking texts and social media posts, controlling social connections, using spyware or location-sharing tools, and stealing passwords—all impacting victims financially.
"One of the most powerful methods of keeping a survivor trapped in an abusive relationship is not being able to support themselves financially,” Glenn explained. “That’s why insurance and financial education are crucial,” she said. “Education can save a life.”