Women have been changing their roles in the home and at work for decades now. They have found that more opportunity and options are available to them now than before. These days, we see women with full-time careers and women who take care of the home full-time – and pretty much everything in between.
Women have found a new work-life balance that was never available before. Due to these factors, many females also have found solvency and greater financial independence. However, there seems to be one huge gap in some women's financial plans.
Do Women Need Life Insurance?
Many financially independent women do not have life insurance. While certain insurance policies like health, homeowners, and auto insurance are necessities, many females forget about life insurance; like most men do. LIMRA found that nearly 48% of women do not have any life insurance. This could be problematic.
Here are four reasons why women must have life insurance:
1. Income Replacement
While it may be unpleasant to think and plan for one's death, life insurance is an easy way to ensure your family won't have financial worries when you pass, as they'll already be mourning your loss.
Life insurance covers funeral costs and more. For full-time homemakers, the cost of paying someone to handle the household duties is often covered under a life insurance policy. As hiring a maid or caretaker can be costly, this could be a substantial help to a family.
For women with full-time careers who have an income that supports a family, a policy can cover funeral expenses along with other day-to-day living costs. These type policies could ensure your family doesn't miss a beat if you were to pass.
2. Financial Gains
Life insurance policies tend to gain financial value over time. For women, your employment or marital status rarely matters when talking about life insurance plans. Agents should understand that this is even more important for women making more than their spouses.
3. Protect Her Interests
There can be situations where a woman does not need life insurance. If she is single without children, then life insurance could be put off. However, certain circumstances permit taking out a policy.
For example, a single woman may consider a life insurance policy if she has a lot of debt and someone co-signed for her loan. By doing so, she could protect the co-signer from taking her debt if she passes.
As well, a woman who is taking care of an aging or ill family member may benefit from taking a life insurance policy. Many policies cover those she cares for if she were to pass.
4. Less Expensive For Women
Life insurance policies and premiums are typically priced based on life expectancy for age groups and genders. As such, women typically pay less than men. This is due to the fact that men have shorter life expectancies on average. Women tend to outlive males by nearly five years.
One of the main contributing factors to gender lifespan is cardiovascular problems. Women tend to avoid heart attacks and strokes earlier in life. Men typically find these problems at a younger age than women.
What is the right life insurance plan for me?
There's no exact math when looking at life insurance. Each woman will have different wants and needs. On average, a woman will want to purchase a life insurance policy 5-15X her income at the moment.
For example, if a woman is making $100,000 per year, then she could purchase a life insurance policy from $500,000 to $1,500,000. Her needs, family, and age will contribute to what type of coverage she chooses. A young, single woman may only want 5X her income in coverage, but a married woman could want up to 15X her income.
For more information on life insurance contact Skyline Risk Management Inc. (718) 267-6600 to voice your concerns.