Women regularly overlook the importance of taking out a life insurance policy, and they are often far more likely to be underinsured than men. Whatever your circumstances, a good life insurance policy can offer financial protection for your family members in the event of your death.
The US Census Bureau revealed that at the end of 2013 there were 161 million women living in the US. Of these women 4 million were over the age of 85; this outnumbered men by a ratio of 2:1. At this time, women comprised almost half of the labour force, almost forty percent were the primary breadwinners for their family, and two thirds were responsible for bringing home at least a quarter of the family’s total earnings. These figures clearly demonstrate the importance of life insurance for women.
Single women often assume that they do not need life insurance because they have no dependents. However, this is not necessarily the case as a life insurance policy can pay off debts and costs that could be passed on to surviving family members; these include funeral costs, final taxes etc.
If you are a stay-at-home mum then you might also think that you do not need a life insurance policy as you do not contribute to the family income by bringing in a wage. However, this is definitely not the case. Running a home and bringing up children is a full-time job, and one that would have to be carried out by paid professionals in your absence, or by existing family members which would reduce the number of hours they could work and thus reduce the family’s income.
If you are a single parent then a good life insurance policy is a must. You are solely responsible for your child’s financial welfare so you need to put plans into place to provide for their future if the worst should happen and you are no longer around. Life insurance gives you peace of mind that your dependents would be cared for in the event of your death.
If you work and have a husband or partner then a life insurance policy would help ease the financial burden on your spouse if you were to die ensuring that they could maintain their current lifestyle. Similarly, even if you don’t have children you may have other dependents, for example, ageing family members, who rely on you financially. Perhaps your elderly parent lives with you, or you are responsible for paying for day care facilities for a disabled sibling. Life insurance would mean that these relatives would continue to be provided for in your absence.
Many women these days are also successful business owners. A life insurance payout could be used to maintain business expenses such as paying salaries, and general running costs whilst your estate is in the process of being settled.
As you can see, in today’s society life insurance is just as important a consideration for women as it is for men. Women play a crucial role in the workplace and provide invaluable financial, and practical support for their families. Whatever circumstances you find yourself in, a life insurance policy allows you to take control of your future and the future of your loved ones. Although life insurance cannot replace you, it can replace a portion, if not all, of your income when you die, helping with day-to-day living expenses, and paying off debts.
A life insurance payout can be used in a multitude of different ways, and can be taken either as a lump sum, or a regular income. It can be used to pay for your children’s further education, or to fund your partner’s retirement. If you have young children and you are the primary caregiver then it can be used to pay for childcare costs and general household expenses including bills, food and mortgage or rental payments.
Life insurance doesn’t only benefit you when you die. If you take out a whole of life insurance policy you can then cash in the policy to pay for major expenses such as a house purchase, a wedding, or perhaps a return to full time education in later life. As you continue to pay your premiums the cash value of your policy builds, and you can draw on these funds in the form of a loan. However, it is important to bear in mind that these type of loans do accumulate interest and the final death benefit and cash value will subsequently reduce.
Life insurance provides women of all ages and backgrounds with a financial safety net that will ensure that your loved ones are provided for in the event of your death. Whatever your marital status you may still have people who depend on you, whether they be children, elderly relatives or employees. Think carefully about your financial commitments, and your hopes and wishes for your loved ones in the future. Choose a life insurance policy that will cover these commitments and ensure that your family is well taken care of, even if you are no longer around to provide for them.