Why Women Need Life Insurance

No matter what her career choice or marital status, however, life insurance for women is important. And because women’s life insurance rates are typically cheaper than men’s, it’s relatively easy to fit a policy into any budget.
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Author: Brian Greenberg CEO of True Blue Life Insurance
Last updated: June 17, 2021

Throughout the years, a woman’s role in the family and in the business world has changed quite a bit. And with this change has come her need for life insurance. Whether she’s the primary breadwinner of her family as an executive in the corporate world, a single parent working a 9-to-5, a stay-at-home mom, or something in between, women need life insurance more than ever before.

Many women today are making more money than their spouse or they are working as a single parent and the head of a household. Even a stay-at-home mom has a dollar value attached to her work in the home. This creates a financial responsibility to her family and a need for protection from the loss of her salary should the worst happen.

Women in the Workforce

According to the United States Department of Labor, 57 percent of women participate in the labor force. And the Bureau of Labor Statistics reports that women make up about 47 percent of that workforce. Despite these facts, women are consistently under-covered when it comes to life insurance. According to the Insurance Information Institute, 43 percent of adult women have no life insurance. And among those who are insured, they only carry about a quarter of the coverage necessary for their needs.

life insurance ownership by gender

On average, women have $129,800 of individual life insurance, compared to $187,100 for men. Additionally, women with high personal incomes of $100,000 or more are less likely to have life insurance than men at the same income level.

Life Insurance Replaces Your Income

If your income helps to support you, your children, and/or your partner, a life insurance policy will provide financial support to them in the case of your death. This can help with the everyday expenses, of course, but it can also assist with helping to cover the cost of the funeral and anything related to it. Sure, it’s unpleasant to think about and plan for your own death, but it is a responsible way to make sure your family doesn’t have to worry about such things on top of having to deal with your loss.

Life Insurance Covers the Stay-at-Home Mom

If you’re a stay-at-home mom, don’t be fooled into thinking you don’t need life insurance. There’s a dollar value attached to what you do at home — a high dollar value for valuable and diverse work that’s just as important to your family’s welfare as working outside of the home.

While we don’t like thinking about a worst-case scenario, if something did happen to you, having a life insurance policy would provide financial support to your family during a very difficult time.

Single Ladies Need Life Insurance, Too

If you’re single and you don’t have any children, ask yourself a couple of questions concerning your life insurance needs:

  • Do you take care of an aging parent or a sibling?
  • Do you have a lot of debt? More importantly, do you have a co-signer on that debt?

Typically, the executor of your estate will sell off whatever they can to help pay off your debts when you die. If you have co-signer on a loan, however, they will be responsible for repaying it. Of course, if neither of these scenarios applies to you, you’re probably OK to put off purchasing a life insurance policy. But keep in mind, it’s cheaper to buy one when you’re younger.

How Much Life Insurance Do You Need?

As a general rule of thumb, and depending on your age, you should multiply your income by anywhere from three to 15 times to arrive at the amount of life insurance you should consider buying. So, if you’re a 40-year-old woman making $50,000 per year at your job, you will want to look at buying a policy that’s worth about $750,000.

Recommended life insurance coverage for $50,000 income

And as a stay-at-home mom, don’t sell yourself short when deciding on an amount for life insurance. Just because your family doesn’t depend on your income, it doesn’t mean you don’t need any life insurance. In a recent survey from Salary.com, stay-at-home moms could be charging around $120,000 per year for their work. This value was taken from the duties they perform in the household on a regular basis. Have you ever thought of yourself as the CEO of your home? You should. What about housekeeper, cook, janitor, psychologist, chauffeur and day-care teacher, just to name a few? Believe it.

According to Loretta Worters, vice president with the Insurance Information Institute, if a stay-at-home spouse dies, the family would need someone to handle the household duties. That’s no small task. The cost could be substantial and a life insurance policy would help to cover those expenses.

Women Pay Less for Life Insurance

How are life insurance rates determined? They are priced according to the average life expectancy for your gender and age. So if you smoke, participate in any dangerous activities on a regular basis, or have certain health issues, it will affect what you pay.

Average life insurance cost for $750,000 of coverage by gender

There is also a difference between what men and women pay, primarily because men have a shorter life expectancy than women. In fact, women outlive men by about five years. Women tend to develop cardiovascular problems like heart attack or stroke later in life than men do. This longer life expectancy will help to lower your life insurance premiums.

Finding the Right Insurance Policy for You

When it comes to the different types of life insurance you can choose from, it’s the same as men. You can select a term life policy at a cheaper premium for a specific amount of time, or you can select a permanent plan that will last the rest of your life and provide you with additional financial planning options. Maybe a no medical exam policy is the way to go for you. The type of insurance you choose and the amount you purchase depends on what your goals, needs, budget and family situation are.

For instance, if you are still young and single, your life insurance needs will be much different than if you are a bit older, married and/or raising a family.

No matter what your current life situation, a licensed True Blue Life Insurance agent is ready to speak with you about your life insurance needs. True Blue compares the policies and rates of hundreds of different insurance companies to find your best solution. Speak with a licensed agent today at 1-866-816-2100.

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About the author
Brian Greenberg author
Brian Greenberg
Founder and CEO
Brian is licensed to sell life, health, annuities, and property and casualty insurance in all 50 U.S. states. He is the author of The Salesman Who Doesn't Sell and is a member of the Million Dollar Round Table, an organization that consists of the top 1% of financial advisors worldwide.