Why Women Need Life Insurance
Men are no longer the sole breadwinners in the American household.
Just like a man who buys life insurance to protect his family, replace lost income if he dies, pay off mortgages and the kid's college educations, women--- who make up more than 50% of the U-S workforce and contribute to the household income--- now share in those same responsibilities. 2008 U.S. Bureau of Labor statistics show that two-thirds of today's families depend on two incomes to make ends meet. In those dual-income homes where both spouses bring home a paycheck, the decision to buy dual life insurance policies is a no-brainer. It not only shows that the couple is committed to supporting the family, it is smart financial planning that offers much-needed security for the future.
Is Life Insurance Affordable?
Life insurance can be one of the most cost-effective portions of a family's financial planning. Term life insurance, which lasts a specific length of time (5-30 years) is at historic low rates because people are living longer. Life insurance companies especially reward women with cheaper premiums because female life expectancy is even higher than that of men. For instance, a perfectly healthy 45-year old woman can pay under $500 a year for a $500,000, 20-year level term policy!
Women Are Behind Men When it Comes to Life Insurance
The research is enlightening and sobering. Women historically have either been uninsured or had too little life insurance. About 30-years ago, men accounted for 57 percent of all life insurance policies purchased in this country, according to the American Council of Life Insurance. Those statistics have improved; today 59% of women have at least some life insurance coverage. But the coverage amount for women is still way behind the men. Take it from an expert: “I think underinsuring the female, whether she is a working or stay-at-home Mom makes no more sense than underinsuring the male. There are just too many uninsured couples putting their families at risk,” says Beth Wood, Assistant Vice President, at MassMutual Life Insurance Company.
Is Life Insurance For Married Women Only?
Two income households or married "economic partners" who depend on both paychecks should definitely carry an equitable amount of life insurance (depending on the income levels of each). Adequate life insurance can replace each spouse's income, help pay for funeral expenses, mortgages, other debt, and guarantee the family's financial future overall.
As a single parent, you may be the sole financial supporter of your children. Obviously, life insurance is essential for you to provide funds to support your child if you were to die. Even if your former spouse and child's dad picks up the financial responsibilities in your absence, it may not be enough to secure your child's future; not to mention that the death benefit from your life insurance will be your legacy to your child.
Non-working Married Mothers are just as important as working moms when it comes to the contribution they make to the family. Not only are the so-called "homemaker's" services priceless, they also carry a financial value. How would the spouse replace and pay for those services without you? It might mean dipping into savings to cover the cost of child care, hiring a caregiver or putting the child in daycare. It might be a line item worth tens of thousands of dollars in the family's annual budget. Not to mention, the devastating emotional loss it would have to the children and entire family structure.
If you're a single woman with no kids, divorced or widowed your needs for life insurance are less significant but not nonexistent. A small life insurance policy for women will take the financial burden off your parents to cover loans or funeral expenses if you die. If you get married and have children later you already have an inexpensive policy in place to take care of your new family responsibilities.
It's Good To be Young
Sorry, I know women get enough messages about the value of youth in our society but when it comes to life insurance being young is good. But the really good news is that it can save you money. Remember women already pay lower premiums than men because they are expected to live longer so buying a life insurance policy while you are young and healthy will help you get the absolute cheapest rates. Life insurance companies reward applicants with a lower risk of dying due to age and illness.
Shop, Shop, Shop Till You Drop for Life Insurance
Talk about power shopping; shopping for life insurance online is quick and easy. The Internet has improved the shopping experience significantly and you never even have to speak to a life insurance agent. Getting multiple quotes from some of the nation's top insurance companies takes minutes and you can do it from the privacy of your home or business computer. OK, so it's not as exciting as finding that perfect pair of sexy sandals, but comparing prices for a life insurance policy to insure your family's future may just save you enough money to put toward that fantastic footwear!
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