Throughout the years, it has often been assumed that men are more in need of life insurance – especially if they are the primary breadwinner in a family.
Yet, while it can be true that males need life insurance, there are also many reasons why women need life insurance – even if they are not earning an income.
According to LIMRA, a research and development organization that offers companies with insurance analysis, roughly 44% of women do not have life insurance coverage.
One reason for this is because, over the years, it has been thought by many in the insurance industry that women do not need this type of coverage.
However, as things have changed over time, this need has in turn increased.
Why Women Need Life Insurance Coverage
Although many women may be more concerned about insuring their health, their auto, and their home, there are also many reasons why females should also consider the need to have life insurance.
Primary or Secondary Income Earner
One reason why women should consider the purchase of life insurance is to replace their income.
Unlike many years ago, today women are heavily involved in the workforce, according to LIMRA, 4 out of 10 women are now the primary breadwinner for their families.
This involvement may involve women working from a specific location, or the starting of a home-based business.
As many families, have come to rely on the income of both spouses, if the unexpected should occur and one of these incomes was lost, it could seriously impact a woman’s family from being about to move forward financially.
If a woman is a stay-at-home mom, there can also be a need for life insurance – even if she does not technically earn an income.
This is because the cost to replace all her duties, such as cooking, cleaning, and child care can be substantial.
Depending on the age of a woman’s children, such responsibilities could be needed for many years.
Therefore, to pay the cost of hiring an outside individual to take over such duties can be extremely costly.
Yet, another key reason why women should consider life insurance – regardless of her income, age, or financial status – is for the purpose of covering funeral and other final expenses.
Today, the average cost of final expenses can range between $7,000 and $12,000.
This is particularly the case when you factor in the cost of a burial plot and a headstone, flowers, transportation, and the memorial service itself.
As many families may not have this amount of money available to them for paying final expenses, it could require a woman’s survivors to dip into their savings or have to go into debt.
With that in mind, having life insurance coverage can be a way to ensure that the survivors won’t go into financial hardship.
The Cost of Life Insurance for Women
There are a number of key factors that are included in the equation when determining the cost of life insurance for a woman.
These will include the type and the amount of coverage that she is purchasing, as well as her overall health condition and age.
On average, though, life insurance can cost less for a woman versus for a man.
One reason for this is because the average life expectancy for women is longer than that of men – and in turn, insuring women for life insurance coverage can be less of a risk to the insurance carrier.
In addition, across the board, women also tend to develop certain types of health issues later in life than men do.
These issues can include stroke and cardiovascular disease – and because of that, women can be less risky for an insurance company to cover.
Types of Life Insurance Coverage For Women
Because every situation is different, there is no one-size-fits-all solution when it comes to purchasing life insurance for women.
Therefore, it is important to first determine the type of life insurance and the amount of coverage that will best fit your specific needs.
Term Life Insurance Coverage for Women
For instance, term life insurance is purchased and will remain in force, for a certain number of years, such as 5, 10, 20, or even 30.
There is no cash value or savings component that is attached to term life insurance – and because of that, these policies can usually be less expensive in terms of the premium that is charged.
A term life insurance policy may be a good option for women who want to ensure that certain debts are paid off.
This could be a home mortgage and credit card debt, or for those who want to be sure that a child or a grandchild’s future college education expenses can be paid.
Permanent Life Insurance Coverage for Women
With a permanent life insurance policy, such as whole life insurance, there is both death benefit protection, as well as a cash value component.
While a permanent life insurance policy will typically cost more in terms of a premium than a permanent life insurance option, going this route can often be more beneficial.
One reason for this is because the cash within the policy is allowed to grow on a tax-deferred basis.
Because the funds can grow and compound significantly over time, the money in the policy can be borrowed or withdrawn and used for various needs, such as paying off debt or supplementing retirement income.
For many women, this can be extremely beneficial.
Today, many life insurance policies will also allow policyholders to access a portion of the death benefit for certain needs while the insured is still alive.
For example, if the insured requires money for paying the expenses of a skilled nursing facility or for paying costs that are due to a terminal illness, she may be able to do so.
Because the life expectancy of women is longer than that of men, knowing that these funds are available can provide female policyholders with additional peace of mind.
Finding The Best Rates on Life Insurance For Women
Having life insurance can be a key component of most any good, solid financial plan.
Knowing that final expenses can be paid, debts can be paid off, and ongoing income can continue for loved ones, and survivors can provide both women and men with substantial peace of mind.
The type and the amount of life insurance that is right for women will be primarily dependent on her particular situation and needs.
Therefore, it is important to have a good idea of the financial needs that exist – and that can be impactful – before making a purchase.
If you are a female and you are seeking the best premium rates on life insurance, then it can be extremely beneficial to work with an independent life insurance broker or agency.
This is because you will be much better able to compare the coverage and the premium rates that are available to you from some different life insurance carriers.
You can do so in an unbiased manner – and from there, you can determine which life insurance option will be best for you and your particular needs.