Women and Life Insurance Coverage

According to a 2021 study, only 47 percent of women have life insurance coverage—compared to 58 percent of men. However, women are just as likely as men to need a life insurance policy.

Why Do Women Need Life Insurance?

Women are just as important as their spouses or partners when it comes to the contributions they make to their family’s wellbeing. They may earn an income, take care of the household and children, or both.

If those contributions were suddenly to end due to death, the remaining spouse would be left with a financial gap to fill. Having to replace a deceased spouse’s income and/or find the money to pay for childcare is no small challenge. And that’s why women need life insurance just as much as men.

Life Insurance Is More Affordable for Women

The good news for women is that it’s more affordable for them to purchase life insurance than it is for their male counterparts. Statistics show that women live longer than men and are far more likely to outlive the term length of a term life insurance policy. As a result, the cost of coverage is in many cases more affordable than for men.

For example, if you’re a 35-year-old healthy female non-smoker, the average monthly premium for a 20-year term life insurance policy with a death benefit of $500,000 could be on average $25. For a 35-year-old healthy non-smoking male, the same term life policy with the same coverage would likely cost $30 per month.

Is Group Life Insurance Through Work Enough for Women?

The short answer is no, it isn’t. While group life insurance through your job might be very affordable or even free, the coverage generally isn’t very much. On average, it’s two to four times your annual salary. But that’s rarely enough to cover the cost of your own home and whatever financial needs your children have.

On top of that, if you leave the job, you most likely won’t be able to take the policy with you.

While it’s usually wise to accept life insurance through your job, it’s also prudent to look into getting your own individual policy. That way, you can purchase sufficient coverage and ensure your policy stays with you, no matter where you work.

When Should a Woman Get a Life Insurance Policy?

It’s time to buy life insurance when you have dependents, or when your death would leave someone else saddled with your debt.

For example, if you’re pregnant or already have children, it’s wise to get life insurance to ensure there’s enough money to take care of them and pay for their education. At the same time, if you’ve bought a home, you don’t want your partner to have to sell it because they can’t afford it anymore.

On the other hand, if you bought a home by yourself, your parents could be liable for your outstanding mortgage. So it’s advisable to make sure that whoever would be saddled with your debt when you pass away is the beneficiary of your life insurance policy.

Contact us today for more information about life insurance for women.