Today, more than ever, women are redefining their roles at work and at home. They have more financial responsibilities and, according to a Regions Bank study, more women feel they are solely responsible for household finances than men.
In another study, more than half of women polled said the thought of running out of money in retirement is a major source of stress and worry — their biggest fear other than losing a spouse. About the same amount of women who responded said they fear they could lose all their money and become homeless.
Another concern for these women is providing for their families after they're gone. At the very minimum, 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 final illness.
The hard truth is that death is inescapable, short of someone discovering a way to reverse aging permanently. Life insurance is not like other types of insurance - you're guaranteed to need it at some point.
The benefits of having a life insurance plan in place are that it can replace income in a time of need, it can protect your interests and your lifestyle, and for women, it’s less expensive. It was found recently that people don’t buy life insurance because of other financial priorities, or because they think they cannot afford it. Interestingly, it was also found that consumers overestimate the cost of life insurance by as much as three-fold.
Life insurance premiums are priced largely according to the average life expectancy for gender and age. Women pay less than men, primarily because men have a shorter life expectancy than women. In the U.S. male life expectancy is 73.4 years for males and 80.1 years for females, a difference of 6.7 years.
Vice President of Insurance Services for David Lerner Associates, Dan Gardella, notes, “Life insurance isn’t an expense — it’s an asset that will eventually provide a return on your investment. As long as you pay the premiums and maintain the policy, your beneficiaries will eventually receive the death benefit.”
Who needs life insurance? The short answer is everyone. And it's as important for women as it is for men. It may be time to consult an insurance professional who can help you assess your life insurance needs, and offer information about the various types of policies available.
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