When and Why Do Women Need Life Insurance
No matter what life stage you are in, life insurance for women is important now more than ever. Women do a lot to provide and care for their families, making up around 57% of the workforce today, so it’s imperative that you have a plan in place if the unexpected happens to continue providing that protection for the ones who rely on you financially.
According to a 2021 Insurance Barometer Study by Life Happens and LIMRA, insurance industry groups, only 47% of women have life insurance coverage versus 58% of men. And when women are covered by life insurance, the average level of coverage is significantly lower.
Why Women Need Life Insurance?
Women need life insurance for the same main reason as men: financial support for dependents. This goes without saying for primary earners, but economic contributions can go beyond income. The median annual salary for stay-at-home moms in 2021 was estimated at $184,820, so if a stay-at-home parent passes away the other parent left behind would likely suffer financially without life insurance.
A life insurance policy can also help you plan for a mortgage, marriage, or a future family. It can also cover your funeral expenses, outstanding debts, and taxes, which would otherwise fall on the shoulders of your loved ones.
While one may argue that life insurance may not be for everyone, but it might surprise you to see who could benefit from having it. Here are some of the reasons why women should consider buying life insurance:
Primary Breadwinner
Today, 49 percent of employed women in the United States, including 42 percent of working women with children, say they work primarily because they are their family’s main breadwinners. If you fall into this category, you need life insurance. Insurance gives a lump sum amount of money to your family in case you get into a situation where you are no more able to earn—an accident, a disability, a critical illness, or when you pass away.
With the amount they receive, the breadwinner’s dependents can use the amount to provide for not only their day-to-day needs, but also to pay off medical expenses, college fees, housing loans, or car loans.
Secondary Earner
If you are in a dual-income household and your income helps to support you, your children, and/or your partner, a life insurance policy will provide financial support to them in the case of your death.
Stay at Home Moms
If you’re a stay-at-home mom, don’t think that you don’t need life insurance. There’s a dollar value attached to what you do at home. You provide substantial support for your family that your spouse or partner would have to pay to outsource if something happened to you.
While we don’t like thinking about a worst-case scenario, if something did happen to you, a life insurance payout would help cover those costs and provide a financial safety net to your family.
Single Moms
No doubt single moms are superheroes…yet they also need some protection. Single mothers provide most if not all care for their children. Between groceries, childcare, clothing, and extracurricular activities, the cost of raising children adds up significantly.
A life insurance policy can help continue to provide funds for this care after you die, covering the cost of their current needs and even providing for future expenses such as their college education. In fact, many life insurance policies offer riders that help cover any children under the age of 18 in your policy.
Expectant Moms
Growth in family size automatically increases your financial responsibilities, which calls for an upgrade to your financial protection and personal finance plans via investment tools. Life insurance is one of the best instruments for this purpose.
Being insured, especially as a parent, has numerous benefits that you won’t get from any other financial tool. From childcare and mortgage payments to death benefits, there is a lot you can achieve with life insurance as a family.
Normally, pregnancy does not directly affect your life insurance rates and insurance providers are always careful to ensure your pregnancy isn’t held against your insurability. However, just like any other applicant, there are some related or non-related pregnancy factors that may affect your approved coverage amount and/or premium amount. In some situations, you may be advised to wait until after delivery for your life insurance policy application.
Single Women
A single woman with no children may still need some life insurance protection in her life. Do you take care of an aging parent or a sibling? Do you have a lot of debt? Do you have enough savings to cover a medical emergency? Do you have funds for final expenses?
Having answers to the above questions can help you determine whether you need life insurance or not.
Women Who are Business Owners
Your small or family business is also affected financially in the event of your death. By naming your business partner or business as a beneficiary in a life insurance policy, you can help protect them from the negative financial impact in the event of despair. Setting up a buy-sell agreement with your life insurance policy will help ensure your business partners and their families receive what they need in the event of your untimely death.
Women Pay Less for Life Insurance
Life insurance is usually cheaper for women than it is for men because statistics show they have a longer life expectancy. Women tend to develop cardiovascular problems like a heart attack or stroke later in life than men do. The younger and healthier a woman is, the cheaper the premiums will be for a term life policy, which lasts from 5 to 30 years.
Don’t Let Health Issues Prevent You from Applying
Good health is clearly important when it comes to life insurance, as you are more likely to qualify for higher coverage at a lower price. However, coverage is based on a variety of factors, and some insurance providers offer policies with coverage to individuals with health concerns or preexisting conditions. For example, say you had breast cancer and assume that no insurer will sell you a policy. The good news is that it is possible to get life insurance after cancer—or if you have other medical conditions.
Additionally, taking steps to get in better health such as quitting smoking or losing weight can often increase your likelihood of obtaining more coverage. Furthermore, for those who are anxious about getting a medical exam in the wake of COVID-19, or do not want their health condition evaluated in-person, many life insurance companies offer policies that do not require a medical exam.
Getting Life Insurance Can Be Fast and Easy
Now more and more companies are using a process called accelerated underwriting that makes buying life insurance easier than it’s ever been before. In some cases, it is possible to get approved for coverage in a matter of minutes and without a life insurance medical exam.
Even though you might be able to get coverage quickly, don’t make a rushed decision when it comes to buying life insurance. Use our free Quote Engine to get life insurance quotes from different companies in the comfort of your home. You can even talk to one of our experienced life insurance agents if you have any concerns. Call us at 800-521-7873.
