Women and life insurance

Collectively, we understand that it’s a good idea to spend wisely, keep a fund for emergencies and save for retirement, but life insurance as a financial planning tool is sometimes overlooked — particularly by women.

More men have life insurance than women. It’s a fact. It’s a significant gap, and one that is out of step with current demographic and financial realities. In today’s world, it’s important for women to look ahead and take advantage of financial planning opportunities that can help them achieve their goals and build security for the future.

Men, women, kids, grandparents, families — every situation is different and unique. There isn’t a one-size-fits-all strategy for financial security. However, the gap in life insurance coverage between men and women is abundantly clear and it’s important for women to start taking advantage of the planning opportunities available through life insurance.

Approaching your personal finances with an eye to future is an opportunity – one that can help provide peace of mind through financial security.

Why women may not purchase life insurance

There are various reasons why women may not purchase life insurance:

  • Their spouse is the primary breadwinner and has coverage
  • They have life insurance through their job (or their spouse’s job)
  • Stay-at-home parent without an income
  • It costs too much
  • They don’t want to think about dying

While all of these concerns are common, some are myths and each one is important to explore with a qualified life insurance professional. Every situation is unique and knowing your needs and the options available to you is the best way to start creating your plan.

“Pink tax”

Research shows that many people significantly overestimate the true cost of life insurance before getting the facts. For women, the so-called “pink tax” (higher prices for products and services marketed toward women) doesn’t typically apply to life insurance. Men have lower life expectancy, which means insurance companies have to prepare to pay out the benefit earlier. For this and a few other reasons, women on average tend to pay less for life insurance than their male counterparts.

Life insurance from an employer

When it comes to life insurance coverage provided by an employer, it can certainly be an excellent start, but it typically ends if you leave the job and may not provide enough coverage for your needs. For stay-at-home parents, unpaid labor is hugely undervalued and the cost of losing a caregiver is significant for any family.

More than a death benefit

We don’t like to think about the end of life, but ignoring it can cause undue stress. On the other hand, preparing for it with sound financial planning may allow you to put it out of your mind by providing a sense of security.

In addition, many whole life insurance policies provide cash-value growth that can be borrowed against through a loan. Women can potentially access this cash while still alive to use to cover emergencies or other expenses like education or home renovations. This, along with other possible “living” benefits that may be available with certain life insurance policies, can help women create a well-diversified financial plan for today, while maintaining security for the future.

Find out how much coverage you may need

Adequate life insurance is an essential part of your overall financial plan. The amount of life insurance you have affects the most important people in your life – your partner, children and other people who depend on you for support. The life insurance calculator below can help you determine how much life insurance you might need. Of course, there is more to choosing life insurance than just these simple calculations. An independent insurance representative can discuss with you all the aspects of your current financial situation and recommend a financial approach to meet your needs.


Source: www.foresters.com

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