David Lerner Associates News

Why Women Need Life Insurance

Core Facts


Friday, July 20, 2018

Today more than ever women are redefining their roles at work and at home. Women have more financial responsibilities than ever before. In fact, 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 said the thought of running out of money in retirement is the 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.

But many women are making more money than their spouse, or they’re working as a single parent and are the head of a household. Recent estimates valued the contributions of stay-at-home-moms at approximately $120,000 a year (taken from the duties performed in the household on a regular basis such as childcare, cooking, housekeeping, among others). 

Given this concern that women feel whether single, married, employed, or a stay-at-home mom, they most likely need life insurance. 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 ageing permanently, and life insurance is not like other types of insurance. The reason for this is that it’s the only kind of insurance where the policyholder is guaranteed to need it at some point in time.

The benefits of having a life insurance plan in place are that it can replace income in a time of need (if a spouse passes away), it can protect your interests and your lifestyle, and for women - it’s less expensive.

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 fact, 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. [5]

Vice President of Insurance Services for David Lerner Associates, Dan Gardella, notes that“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. There are many types of life insurance policies available. The bottom line is that life insurance protection for women is equally as important 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.

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. 

 

IMPORTANT DISCLOSURES

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.

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About

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
Zimmerman/Edelson
516.829.8374 X 232
jmendlinger@zimmed.com

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  • Press Contacts

    Jake Mendlinger
    Account Manager
    Zimmerman/Edelson
    516.829.8374 X 232
    jmendlinger@zimmed.com
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