Considerations for women
Historically, women have almost never been adequately insured. According to the American Council of Life Insurance, as recently as 1977, women were listed as the insureds on just 29 percent of policies purchased.
Of women who do carry insurance, most are severely underinsured, carrying around one-half as much coverage as men do. According to LIMRA International, in 2007, the average amount of life insurance coverage on insured husbands was $235,600 and insured wives averaged $147,800 of life insurance.
However, more and more women are purchasing life insurance. Since 1998, sales have increased 10 percent and the gap continues to close. According to LIMRA International, in 2007, 72 percent of wives had some life insurance compared to 85 percent of husbands. Coverage amounts are still lagging far behind men.
Women need life insurance for many of the same reasons men do. No matter where you are in your life (married, single, working full-time, homemaker), chances are there are people who depend on you. Life insurance makes it possible for you to protect your loved ones, meet your objectives and fulfill your responsibilities.
The cash provided by life insurance can do more than just pay funeral expenses. It can pay the mortgage and other household expenses, fund future education costs, supplement retirement savings and help pay estate taxes. Without life insurance, your family might be forced to sell assets to pay outstanding bills or taxes.
Women need insurance if they are:
- Part of a two-income family: Today, 61 percent of married women bring home a paycheck (compared to just 23 percent in 1950.) Husbands and wives are now economic partners who often depend on both paychecks to make ends meet. If anything happened to you and the income you generate, would your family be able to remain in their home? Would your children be able to achieve their education goals? Would your family suffer a severe financial loss? Adequate life insurance can replace your income, remove uncertainty and help guarantee your family's financial security.
- Single head of household: Despite your major financial responsibilities, in this role, chances are you have little, if any, life insurance. As sole breadwinner, you are responsible for the support and care of your children. Your need for life insurance is even more crucial than that of a dual-parent household. Many single women will forego buying insurance because they think it will cost too much. You may be surprised. Insurance costs for women can be very reasonable because statistically, women are more likely to outlive men.
- A full-time homemaker: Today, many women still choose to stay at home to be full-time mothers and homemakers. The services you provide each day would cost tens of thousands of dollars a year if they had to be purchased. The cost for childcare alone can average $8,800 per year (depending on where you live).
- Single, living alone: Being single is not always the same as being without responsibilities. You may have loans. Plus, should anything happen to you, there will be final expenses that can run into the tens of thousands of dollars. If you do not have life insurance, these obligations will fall on loved ones. In addition, buying life insurance now can help protect your future insurability as you get older.
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