August 21, 2024
Life Insurance for Women: How Much Do You Need?
Life insurance can be confusing for many women. You probably want to know how much it will cost, when to buy, what type of policy is best, and where to get answers. No matter what your marital status or employment status is, life insurance coverage can protect your assets. Choosing a policy that fits your needs can help give you peace of mind with the knowledge that your loved ones are protected.
When to Buy Life Insurance
What Is the Best Age for Life Insurance?
What Kind of Life Insurance to Buy
Women and Life Insurance
Learn More About Women’s Life Insurance
What Will Potentially Disqualify / Deny You for Life Insurance?
How Do I Find Out if I Am Eligible for Life Insurance in the United States?
How Do I Buy the Best Insurance for Women?
Why Women Need Life Insurance
It is unfortunate that there is a significant gender gap when it comes to plans between men versus women. According to the 2023 Insurance Barometer Study by LIMRA, only 49% of women have insurance company plan policies versus 55% of men.
However, this does not mean that women don’t understand the importance of life insurance. So why are women settling for less coverage than they need?
For a deeper understanding of why there is a gender gap, we need to take a closer look at why some women hesitate to obtain sufficient coverage.
- Women may feel that a group policy from their workplace is sufficient.
- According to Forbes, there is still a substantial difference in men’s and women’s earnings. Women who earn less may mistakenly believe they need less coverage.
- Women who do not work outside the home may believe that insurance is unnecessary since they do not earn an income.
- Women who are pregnant and those with medical conditions may believe they cannot obtain insurance.
- Women may feel that purchasing insurance is too difficult or time-consuming.
- Many women may believe that they lack enough knowledge about life insurance policies in order to make an informed decision.
Most Single Parents Are Women
In order to dispel these insurance myths, consider the role women play in the household. Currently, there are over ten million single-parent households in the United States according to the U.S. Census Bureau. Nearly 80% of the custodial (aka primary) parents in this population are women.* To protect the children and the assets of the family, an adequate insurance plan can be incredibly helpful.
Stay-at-Home Moms Need Coverage
If a household has two wage earners and one of them passes away unexpectedly, a life insurance plan can be helpful in covering the loss of income. The coverage must take into account the additional services that parent provides, including household chores, transportation, childcare, and meal preparation.
The same is true for stay-at-home moms. Some people believe stay-at-home moms have little value when it comes to income replacement. The opposite is true, however. Think about it. Even though you don’t get paid, your work is valuable and hiring someone to do what you do on a daily basis can be expensive.
Coverage Even if You Are Pregnant or Diagnosed With an Illness
A diagnosis of a disease or being pregnant should not deter you from purchasing an insurance plan. It is important to discuss your options with an experienced agent, even if you have an illness or medical condition. There are life insurance options available to fit different needs and there are companies that offer coverage for those with illness or medical conditions – one of their experts can help you review your options.
Group Policies May Not Be Enough
If you are already covered for life insurance at work, most likely it is a group policy that covers the equivalent of one-two years of your salary. Sit down with your agent and go through your needs to determine if that is sufficient. How much money would it take to protect your loved ones if you were to die? Would a year or two of your salary be enough to keep your loved ones financially stable for as long as they need?
If you’re interested in getting an estimate of how much life insurance coverage you may need, check out our Life Insurance Needs tool, or reach out and we’ll put you in touch with one of our expert agents.
Get Help From Experts
Despite the fact that there is a lot to know about insurance, it does not have to be overwhelming or time-consuming. Your dedicated insurance agent is a specialist and can answer your questions.
If you have health questions, you will ask your doctor. If you have questions about your hairstyle, you will ask your hairdresser. Agents are experts at what they do and will be happy to answer your questions and explain your options in detail.
When to Buy Life Insurance
Whenever you undergo a life change, it’s a good idea to consult an insurance agent to inquire about obtaining life insurance coverage or adjusting your current policy coverage. You can find out whether the death benefit of your life insurance policy is enough by talking to your agent. Likewise, they will be able to recommend any changes and provide detailed information.
Getting married, getting divorced, starting a family, purchasing a home, losing your spouse, and even pre-retirement are all situations in which you should discuss your current policies and needs.
If you’ve undergone a life change recently or are planning on making a big change in the near future, reach out to your dedicated agent to review your current coverage and determine if the policy you have will be sufficient for your new situation. If you’re a BetterLife member and aren’t sure who your agent is, contact us and we’ll get you in touch with the right person.
When Getting Married
If you’re getting ready to tie the knot, now is a good time to review your insurance portfolio. In addition to a possible beneficiary change, you may want additional coverage. As a single person, it’s possible that no one depended on you to support them financially. Now, your situation has changed. Don’t you want your newly engaged partner to be adequately protected if something were to happen to you?
Your policy coverage can help cover things like rent or mortgage payments, other financial obligations, or expenses associated with raising children.
Life Insurance During a Divorce
You should review your insurance coverage if you are getting divorced. You can protect the assets you accumulated during your marriage with a life insurance policy. If you have dependent children, you will want to ensure that they are provided for. Divorce agreements often require both spouses to carry life insurance. During the process, you should also consider the beneficiary.
Another thing to keep in mind is there is sometimes an income gender gap between men and women. Having policy coverage that protects you and your assets can help lessen the stress during a difficult time.
Starting a Family
It’s important to protect your new child up-front if you are pregnant or adopting. Make sure your plan is sufficient enough to cover medical bills, child care, and other costs associated with pregnancy or adoption. Owning an insurance policy as a pregnant woman or new parent can help you safeguard your income. It can also give you some peace of mind, knowing that you are protected should an emergency arise during your pregnancy or early motherhood.
Purchasing a Home and Vehicle
When you purchase a home, your life insurance coverage should reflect this new asset. The benefit of having life insurance when buying a new home is that in the event you pass away, your coverage can help your spouse or co-owner pay off the mortgage.
Another time in your life you may want to purchase a life insurance policy is when you buy a new car. Similar to when you buy a home, buying a car often means you have new monthly payments to take care of. If you were to pass away unexpectedly while you still owe money on your vehicle, a life insurance plan can help your loved ones pay off your car.
Life Insurance for Widows
Regardless of your employment status, life insurance is incredibly important if you lose your spouse. You will want to make sure your children are provided for. You may need a life insurance policy to cover things like child care, debt, and education expenses, or to cover your mortgage or rent.
Retirement
Just because you’re retiring, that doesn’t mean that you should forgo protecting your assets and providing for your beneficiaries. Final expense life insurance can provide your loved ones with money to help pay for your funeral, burial, and other costs. This can be a huge financial help, especially when your family is already struggling with the emotional impact of your death.
Even if you are at retirement age, it is often still possible to get life insurance. Depending on your age and state of health, you may pay higher premiums. To determine a client’s risk level and depending on the type of life insurance policy you’re applying for, life insurance companies might require that you undergo a physical examination. They may also decide to take pre-existing conditions into account.
Your premium will be based on your actual qualifications, not just your age. As an example, an older adult with poor health will pay higher premiums than a young, healthy person.
What Is the Best Insurance for a Single Female?
While we wish there was a cut and dried answer to this question, the best life insurance policy for each person varies depending on their individual needs. What we can say, though, is even if you are single and have never been married, life insurance is a great way to protect your loved ones and assets while helping give you peace of mind.
Your life insurance agent can help you look over your needs to determine a policy that works for you. If you already have a plan, they can review your policy and coverage with you, especially in the case that your marital, financial, or employment status changes.
What Is the Best Age for Life Insurance?
There really is no “best” age to purchase life insurance. Unfortunately, old age and sickness are usually the drivers and motivation behind buying a policy. However, we’d recommend you look into a policy while you’re still young, because the younger and healthier you are, the better your rates will be.
The two main factors that life insurance underwriters look at when determining your premium rates are age and health status. Therefore, it is better to lock in a policy when rates are typically at their lowest; in other words, when you’re young and healthy. Additionally, having pre-existing conditions could result in higher rates if you postpone purchasing life insurance until later on in life.
The younger a person is, the longer their life expectancy will be, so they are considered a less “risky” group. As a result, life insurance companies will charge lower rates to those “less risky” individuals. They’ll also charge higher rates to people who are older and are likely to die sooner. In this case, if you get your policy now, it can be much less expensive than if you wait ten years.
What Kind of Life Insurance to Buy
Which insurance is best for women? While there isn’t one single life insurance policy that’s best for women as a whole, understanding the types of insurance and how they differ can help you choose the right policy.
Whole Life
- Whole life insurance, also known as permanent insurance, does not expire as long as you stay up-to-date on your premiums. In addition to a guaranteed** death benefit, whole life policies offer cash value. A cash value grows over time and can be borrowed against by the policyholder when it accumulates enough value.
- The cost of this type of policy is often higher than a term policy. Regardless of the cost, whole life is a great option for those looking for permanent, lifelong protection.
Term Life
- Term life insurance offers protection for a set period of time and is typically more affordable than whole life coverage. That’s why many women, especially mothers, consider a term life policy.
- If at the end of the term, you decide you no longer need the policy and stop making premium payments, the policy will expire. If you decide you would like to extend the term, you may be able to continue paying on an annually renewable basis. The payments, however, will no longer be level and will be assessed based on your age.
- Your term life policy may come with an option to convert to permanent coverage. BetterLife’s Term Life coverage gives you the option to convert your term policy to a whole life or universal life policy – you can convert your policy during the initial term or before the age of 70 (whichever occurs first).
Women and Life Insurance
If you still feel unsure about speaking with an insurance professional, here are some things you should consider:
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- The cost of life insurance for women is generally lower than for men. This is based mainly on the fact that women live longer than men.
- You will typically pay a lower rate when you are younger. Therefore, the earlier you purchase a policy, the lower your premium will be.
- Policies are customized by the insurer for both men and women so that you can get the best coverage at the most affordable rate.
- You also need to consider the amount of life insurance you need based on your individual needs and situation. Use our handy tool to better understand how much you may need.
Learn More About Women’s Life Insurance
Have additional questions? Connect with a BetterLife agent near you to explore which plan might be best for you. Or give us a call at the BetterLife Home Office and we’ll put you in touch with an agent.
What Will Potentially Disqualify / Deny You for Life Insurance?
Having significant health issues, like cancer or heart disease, may disqualify you from obtaining certain types of life insurance. Even so, some people with these conditions get their applications approved; insurance companies approve this on a case-by-case basis. Additionally, there are specific types of life insurance policies you can apply for that offer guaranteed issue.
Insurance companies will likely also review your medical history. The purpose is to see if there are other conditions that could put your life at risk, like preeclampsia.
Give us a call and we’ll put you in touch with an agent who can help you find out what life insurance plan would be best for you. Your dedicated agent will guide you through the process and give you helpful tips to help you get approved without delay.
How Do I Find Out if I Am Eligible for Life Insurance?
You can learn if you are eligible for life insurance by speaking with an agent. Call or schedule an appointment to speak with an agent here. The process is fast, free, and there is no obligation to purchase.
How Do I Buy the Best Insurance for Women?
There’s really no single type of life insurance that’s best for women as a whole. Finding the type of insurance best fit for you would be the first step. Speak with an experienced life insurance agent who will help you understand the policy content and answer any questions you may have. Or, if you’d prefer to do your own research first, visit our life insurance page to compare each type of policy.
Once you understand the level of coverage you need and the type of policy that best fits your situation, the next step would be to compare several quotes online. Or get in touch with a licensed agent who can help you find the policy that offers you the right protection along with the price that best fits your budget.
If you’re ready to begin the process of finding life insurance protection today, contact one of our agents; we’re ready and happy to assist you! You can rely on us to guide you through this process, so please don’t hesitate to send us an email at contact@betterlifeins.com or give us a call at (800) 779-1936 and we’ll get you in touch with the right agent.
If you’re not ready, you don’t have to decide right now. Feel free to take your time thinking about the details and benefits of each type of plan.
Ultimately, at BetterLife we care about protecting you and your family by finding the plan that aligns with your financial goals and best fits your family’s situation. Don’t hesitate to reach out today with any questions, no strings attached.
* https://singlemotherguide.com/single-mother-statistics/
**Guarantees are backed by the financial strength and claims paying ability of BetterLife.