Life insurance is essential financial protection for everyone. And some might argue that it is even more so for women than it is for men. The reasons for this are quite simple when you think about it. On average, women outlive men by three to four years, and they comprise the majority of older Americans. But women have fewer years of work and lower earnings over their professional years, so they’re faced with a challenging problem.
It is well-documented that women are still earning less compared with their male counterparts. For every dollar that U.S. men make on average, women make about 80 cents. When you take race into account, the gap widens. Black women make 63 cents for every dollar white men make. Latinas make 54 cents. And in the United States, we are lagging behind on the global stage. The U.S. is behind 48 other countries around the world when it comes to closing the gender gap, according to data published recently by the World Economic Forum.
In addition, some women also face the issues of being single mothers and are more likely than single men to have the financial burden of custodial parenthood. Also, a lot of women enjoy fewer fringe benefits (such as employer-sponsored retirement plans) because women are more likely to work part-time, and such benefits are often denied to part-time workers.
It is almost predictable that at some time in a woman’s life she will be on her own due to divorce or widowhood, and then life insurance becomes a vital asset. Life insurance provides security for your family and ensures that those who depend on your income will be provided for should anything happen to you.
Even those women who aren’t alone will benefit from a life insurance policy, if for nothing else than for peace of mind. Stay-at-home moms need life insurance. If a wife or mother passes unexpectedly, the remaining spouse or caregiver can easily become overwhelmed and need to hire someone to share the load.
On the positive scale though, women often get better rates, because women have a longer average life expectancy than men, which in turn brings the cost of life insurance down for them. Also, keep in mind that the younger and healthier you are, the less it will cost you.
Think about the stresses that money, retirement, and old age cause. More than half of women said the thought of running out of money in retirement keeps them awake at night — their biggest fear other than losing a spouse. About the same amount of women say they fear hey could lose all their money and end up homeless.
Given this concern that women feel, whether single, married, employed, or a stay-at-home mom, you could greatly benefit from having life insurance. At the very least, life insurance can aid in paying for the costs of funeral and burial services, estate administration, outstanding financial obligations, estate taxes, and the uninsured expenses of a terminal illness.
Life insurance policies are many and varied. Determining the policy that meets your needs may depend upon a number of factors. Understanding the basic kinds of life insurance can help you discover the policy that's appropriate for you, and speaking with a professional financial advisor will help you in this regard.
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC