Gone were the decades when women were confined to specific roles, often limited to housework. These days, many women across the globe dabble in science, sports, and politics and excel in them. Both small and large companies have also seen a rise in women joining the workforce.
But among the many visions that some women have in mind in their 20s, life insurance isn’t one of them. And it’s more concerning that only 47% of women already have life insurance, according to a 2020 study by Life Insurance and Market Research Association (LIMRA). Whether you’re a stay-at-home mom, someone working a 9-5 shift, or a single parent doing your best every day, you need life insurance.
Here are a few reasons why:
- It’s Cheaper For Women
You’d be surprised to learn that life insurance rates for women are cheaper than for men. Why is that? Women tend to live longer and might live past an insurance policy’s term length, thus making it more affordable.
Women of any age can purchase life insurance. With that said, it’s still better to get it while young. If you’re thinking of getting one for yourself, consider online life insurance companies like Sproutt or other similar companies to get you started.
There are three types of life insurance to keep in mind. Before you purchase one, think about which works best for you and your family.
- Term life insurance. This type covers a set period — typically 10, 15, 20, or 30 years. It expires at the end of the term. Despite this, you could still renew or convert your policy, depending on your insurance provider.
- Whole life insurance. This type doesn’t expire as long as you pay the premiums. You can also receive a cash value component with growth potential. You may even borrow from the cash value. Take note, though, that withdrawals and loans might generate income tax liabilities. These may also reduce the cash value and death benefit.
- Universal life insurance. This type is similar to whole life insurance. Both share a cash value component and won’t expire if you keep paying the premiums. You will usually have more freedom and flexibility to adjust the premium and death benefit with universal life insurance. But you’ll need enough cash value in the policy. Also, to keep the policy in force, you may need to make additional payments.
- Coverage From Work Isn’t Enough
According to the United States Department of Labour, around 57% of women make up labor. While you might grab the chance for group life insurance, you can’t keep this when you decide to resign from your job.
Often, you won’t even get enough from life insurance gained from work. It’s equal to only about one or two times your annual income, which won’t cover you, especially if you have kids. You’ll need individual life insurance if you want to cover everything from a mortgage to your child’s college education.
You can calculate how much insurance you need by adding all expenses and debts you need to cover. Subtract your existing life insurance or college savings and any amount you already have that covers this. The difference you’ll get is the estimated cost of how much you need for life insurance. There are life insurance calculators available online for you to use for more accurate results.
- Women Live Longer Lives
As mentioned earlier, women live longer lives compared to men. Women’s life expectancy is projected to reach around 87 years by 2060. However, women still purchase less life insurance for varying reasons. You might even be the type to save less for retirement, typical for other women.
Life insurance, such as the whole life option, may offer valuable protection for you. You can also use its added benefit of cash value to offset the cost of your college education or your retirement in the future. Check out this explanation on life insurance options if you’re still unsure what specific terms mean and which type works for you. Buying life insurance won’t just protect you, but your loved ones, too.
- It Covers Stay-At-Home Moms Too
Even full-time, stay-at-home mothers can provide economic support for their families. There’s no need to worry about not having an income replaced by life insurance. Most insurance companies recognize the value of a stay-at-home parent, so it’s not so far-fetched for non-breadwinners to purchase life insurance for themselves.
Having life insurance as a stay-at-home mom also ensures your family is financially protected if something terrible happens to you. Your surviving spouse will still be able to provide for your children and other services to maintain the upkeep of your home.
- Don’t just settle for your spouse’s insurance
Many women often choose a life insurance plan close to or the same as their spouse. It looks like the right way to do things, but in reality, it may not work well for you.
Life insurance is personalized for each individual. Avoid bad experiences by getting an insurance plan that’s tailor-made for you. Your spouse’s plan may not always be the right fit, so make it a point to consult first before purchasing. And, try to buy one while you’re still young to benefit from its low price.
- It Replaces Your Income
Don’t rely too much on your income from your job. A monthly income usually covers regular expenses like bills, groceries, and others. It may support you, your partner, and your kids, but life insurance will provide a financial net if something goes wrong.
- Death benefit
Not everyone likes thinking about their death, but it’s the responsible thing to think of how to support your family after it happens. The death of a family member is stressful enough. What more if your relatives also get stressed from the finances? When you have life insurance, your family will have the funds to cover funeral costs often expensive.
- Future education expenses
College is a whole investment. If you have kids, they’re bound to attend college someday soon. You may have heard of the 529 plan, but a permanent life insurance plan is also a viable option. Even if you’ve already contributed to a 529 college savings plan, you can still add to that using the insurance’s death benefit if you pass away unexpectedly. There are pros and cons to both college fund-saving schemes mentioned, so do some research before choosing one over the other.
Ensure Yourself For The Future
Nothing’s more daunting than not having the money to survive, especially as a woman. Fortunately, many life insurance options are available for women of all walks of life. Take the time to get consultations and review the choices you’re given. Life insurance is an investment you should get to guarantee a financially-stable life for you and your family.