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Women Need Life Insurance

In today’s modern world, women are redefining their positions at work and home. Women have more fiscal responsibilities than ever before, and in fact, according to a Regions Bank study, more women feel they are solely responsible for household finances than men. 

Other research reveals that more than half of women said the thought of running out of money in retirement is a major source of stress — their biggest fear aside from losing a spouse. To give you a comparison, about the same number of women who responded said they fear losing all their money and becoming homeless.

But gender gaps are closing and nowadays 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 regularly such as childcare, cooking and housekeeping, among others). 

Whether single, married, employed, or a stay-at-home mom, women need life insurance. At the very minimum, life insurance can aid in paying for the costs of final arrangements after one passes – 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 inevitable, short of someone discovering a fountain of youth, 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 qualify for it at some time or another.

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 pay of maintaining your lifestyle. But 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. 

Think of Life insurance this way: it 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 benefit.

One could argue that everyone needs life insurance, no matter your age or gender. However, the bottom line is that life insurance protection for women is equally, if not more important than it is for men.

Many people avoid buying a life insurance policy because they think they cannot afford it. Interestingly, it was found that consumers overestimate the cost of life insurance by as much as three-fold. 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.



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.

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