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Estate Planning

4 Reasons Women Must Have Life Insurance

4 Reasons Women Must Have Life Insurance

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. 

Insuring Your Life after Death: The Need for Life Insurance

Insuring Your Life after Death: The Need for Life Insurance

Two things are certain in this world: death and taxes. Unfortunately, taxes are such a certainty, they even exist upon death. Because of these certainties alone, life insurance can be the answer many families look for when dealing with the less-than-perfect financial loss of a loved one. While many people view life insurance as a luxury to be bought and paid once necessities are out of the way, the truth is, life insurance is as much of a necessity as food, clothing, and shelter if you have any semblance of a family, whether it be a spouse and children, siblings, parents, or even an ex-spouse. Life insurance insures their life after your death and makes sure everyone is financially whole, even if they are emotionally in pieces.

Taxes and Death Expenses

It costs money to die. This is entirely apart from any estate tax, although that might be an issue as well. There are costs to bury or cremate a person. Then, the costs to appraise, administer, and probate a will and property disbursement must be added to the overall outpouring of money during this already difficult time. Without life insurance, your loved ones are left to worry about one more piece of the puzzle, which there may not be any liquid assets to cover. This may be the most costly endeavor your family will face and is the most obvious reason everyone should purchase even the smallest possible life insurance policy.

Peace of Mind

Once those issues are covered, it is important to review your family’s financial needs and well-being in the event of your death. Life insurance can be a wonderful resource to not only ensure your family’s financial well-being, but keep complex finances in order even when you are gone. For instance, business partners may utilize life insurance policies to cover the purchase of the partner’s business interest in the event of death. The payout will be enough to compensate the remaining family for the deceased party’s portion of the business while allowing the partner to both buy out his deceased partner and continue business as usual.

Life insurance is also a great resource to ensure large expenses will be covered in the event of the provider’s death. For instance, you may set up the policy to go to a child’s trust to be earmarked for college tuition. Or, your spouse may benefit by having the mortgage paid off to allow her additional money for living expenses without your added income.

This money can even be used for the added expense of retirement of the surviving spouse, such that she does not become dependent on the children. This can also be an amazing benefit for those with special needs children. Life insurance can be purchased to help cover the costs of raising a special needs child and caring for that child upon your death. Along with a proper estate plan and will, your child should be covered financially even when you and your spouse are no longer physically available to help.

The benefit to life insurance policies over other financial avenues is the non-existent transfer costs. Life insurance payouts are tax free and do not cost additional fees, such as administrative or legal fees. The money only becomes taxable upon the survivor’s death as a part of his or her estate, if your state has estate taxes. Therefore, life insurance becomes a desirable tax-free financial tool for your heirs.