In a recent survey, both men and women, 79% and 78% respectively, said their death would have a profound impact on their family’s quality of life. Then why is it that only 67% of women have life insurance compared to 79% of men?
In today’s world, over half of the workforce is made up of women and a large percentage of American households rely on two incomes. Why is there such a disparity in women having life insurance?
Whole life insurance policies are one way to erase this disparity and protect the financial interests of women and their families.
Learn more about why women need life insurance and what benefits a whole life insurance policy would provide. Also, read on to learn more from this whole life insurance guide especially focused on the needs of women.
Why Do Women Need Life Insurance?
The role of women has changed pretty drastically over the last 50 years. Now, women make up 57% of the American workforce, bringing home their income to help to support their families.
The whole reason more men have traditionally had life insurance policies over women is because of their role as breadwinners. Now, more and more women have that role or are at least sharing that role in their household.
If their income contributes to the stability of the household, then it would be missed should something happen to them. It’s for this reason, it’s surprising more women don’t have their own life insurance policy.
Even if women are at home caring for children and family, they have a significant role. What would happen to the family if that woman was no longer there?
She might not be bringing in a traditional income but her role would have to be replaced. Suddenly, there would be a need for child care and support for caring for the home. A life insurance policy would provide the necessary protection.
Avoid Undervaluing Worth as a Woman
Based on these statistics, it’s pretty obvious there’s a gender problem related to life insurance. Women need to be mindful to not undervalue their worth, whether they’re part of the workforce or working at home to care for their families.
Both roles make them significant contributors to their families and come with a cost.
It’s important for women to understand the value they contribute and get enough life insurance to protect their family so their lifestyle isn’t disrupted should the worst thing happen.
Types of Life Insurance to Consider
Many people will say one of the reasons they haven’t bought life insurance is because they don’t understand it. They don’t know about the different types of life insurance.
Some might even worry that it’s too expensive. Paying for life insurance premiums should be a priority and built into your budget to make sure you’ve provided the necessary protection for your beneficiaries.
What Is Term Insurance?
Term life insurance is one type of insurance to consider. In this model, you purchase a plan that covers you for a designated term. If you die during the term, your beneficiaries get a payout.
If you don’t die and the term ends, you don’t have a policy anymore. Term life insurance tends to be less expensive. But you could also pay for it for years and years, and get no return from it when it’s needed.
What Is Whole Life Insurance?
Many who buy life insurance feel like whole life insurance is a better option. Once you buy a whole life insurance policy, the policy remains in effect for your whole life as long as you keep paying benefits.
The benefit of this type of policy is that it never expires. Most whole life policies have a cash value component.
This allows you to use the whole life policy as an investment tool. The policy can accrue in value over time. Some people will use the whole life policy for an investment and tax saver when they max out their other retirement investments like a 401k.
One desirable feature of a whole life policy is that it allows for you to borrow against the policy later in life while you’re still living.
What Is Indexed Universal Life Insurance?
One type of permanent life policy is an indexed universal life insurance policy. When you buy an indexed universal life policy, the premium is divided. Part of the premium is used to purchase a sort of term insurance that would provide a death benefit when you die.
The other part of the premium is added to the cash value of the policy. Then part of the benefit of this type of policy is when the policy is regularly credited with interest based on increases in an equity index.
This type of policy is optimal because it acts as both life insurance and an investment tool.
You have optimal control with this type of life insurance policy. You’re able to increase or decrease the value of life insurance policy and your investment based on financial needs. As you have a higher income, you’re able to increase payments towards the investment portion of the policy.
Life Insurance Benefits for Women
Of course, when you purchase whole life insurance, you do it so there’s a death benefit for your loved ones if something happens to you.
There are some other whole life and permanent life insurance benefits to consider. These include:
- Financial security for loved ones
- Borrow back cash value option while still living
- Care benefits for the living
- Tax considerations for both you and your beneficiaries
- Opportunity to build wealth using a policy like an indexed universal life policy
Nobody wants to imagine their loved ones without them. You also want to know they have the needed protection and security should something happen to you.
Often a whole life insurance policy offers you the chance to plan for the future while you’re alive and after you’re gone.
Whole Life Insurance Policies That Will Benefit Women
Women should not underestimate their value and the importance of having life insurance. Whole life insurance policies offer many benefits to women who need or are considering life insurance to protect their loved ones.
At My Guaranteed Income, we focus on the needs of women and planning for their future. Let us help you look at your life insurance needs. Contact us today to learn more about our whole life or indexed universal life insurance options.