Owning a life insurance policy can be a good financial decision to protect your future. While 57% of men own a life insurance policy only 46% of women own life insurance.
This disparity between men and women shows us that there may be many factors contributing to the lower amount of women who own life insurance policies
With many women owning successful businesses, being the primary breadwinners, or being the sole caretaker of children, owning life insurance is more important than ever to protect their loved ones in the case of an unexpected death in the family
Why women own less life insurance than men
According to recent studies, many factors prevent women from owning life insurance.
Financial literacy, feeling there is no need for it, and misconceptions about costs have prevented women from owning life insurance policies.
Financial literacy
Learning about life insurance can be confusing. Anyone, not just women, can work to improve their financial literacy when it comes to life insurance. Learning about how a policy works, how to enroll, and the benefits of different types of policies can help you in the long run.
Additionally, learning about how much life insurance you should have, when to enroll, and why it is important can help you better understand its value.
With the internet, there are many resources to learn about life insurance. However, it is important to get your information from a trusted resource such as a licensed broker and official organization specializing in finance and life insurance so you can be sure the information you learn is correct.
Read more about life insurance
No need for insurance
Being young and healthy is a common barrier to purchasing a life insurance policy. However, there is a great need for life insurance no matter how old you are because it can be used to replace your income and cover funeral costs, among other benefits.
You will also be your healthiest and youngest at the time of enrolling in a life insurance policy. The longer you wait to enroll, the higher your premiums could be depending on your age and health history, so it is important to enroll while you are young, even if you do not need it right away.
Misconceptions about costs
A common misconception about life insurance is that it is unaffordable. This misconception is not limited to women, but anyone looking to purchase a policy.
The cost of life insurance is based on your age and health status. Enrolling when you are young and healthy will significantly reduce your costs in the long run.
Even enrolling in a small life insurance policy can be beneficial to your loved ones to cover funeral costs.
What happens without life insurance
Forgoing coverage can make it difficult for individuals and families to maintain their lifestyles.
Many women do not own a life insurance policy because they are not the sole income earners, especially if they are married and stay-at-home mothers.
However, even stay-at-home mothers provide invaluable skillsets that a life insurance policy can benefit from.
The cost of daily child care, cooking, and cleaning that stay-at-home mothers often provide can add up. Replicating these services and hiring them out can cost as much as $184,820 per year. Having a life insurance policy can help to cover these costs if needed.
Similarly, if women have a career and a family, their monthly income will no longer be available in the case of a sudden passing. This loss in income can make it difficult to maintain lifestyles and risk having to change how family members live.
Single, working women who are not married with children should still consider life insurance because it can help cover any unexpected costs family members will have to pay when they pass, such as an outstanding mortgage or rent, loans, and funeral costs.
All in all, while the death of a loved one is difficult to think about, it is necessary. Having a life insurance policy as a woman is a great way to be financially savvy but also helps to ensure your family can go on without you.
Young children who rely on the care of a family member can impact their daily lives if they are no longer able to maintain the same routine.
A significant other who relies on your dual income to maintain their monthly expenses will find the death benefit from life insurance helpful as they navigate their new lifestyle.
Being a single woman who has a life insurance policy can further your financial independence.
Don’t wait to enroll in life insurance. Schedule a free consultation now.