According to a recent study, not only is there a gender wage gap, but also a gender gap in life insurance coverage. Significantly fewer women than men have life insurance policies. Life insurance is a critical tool for financial planning and protecting your loved ones. Women are a vital part of the economy and are crucial to their families’ economic security. Nevertheless, many women overlook the importance of life insurance or delay purchasing it.
Why Do Fewer Women than Men Have Life Insurance Policies?
One reason women are underinsured with life insurance is the historical wage gap and income disparity between women and men. Traditional societal views may be another factor, as women have been seen as caregivers first and earners second. Inadequate resources targeting women and insufficient education on financial topics may also contribute to the discrepancy. Finally, misconceptions about access and affordability may lead many women to assume that life insurance will not fit their budgets.
What Do Women Need to Know About Life Insurance Today?
Life insurance can be a cornerstone for financial planning. This is what women need to know:
- Life insurance is not only for breadwinners. It is a common misconception that life insurance is only needed for primary income earners. Women often provide contributions that go beyond a paycheck. The work of stay-at-home parents represents significant economic value. The costs of replacing services such as childcare and household management could significantly burden the family.
- The sooner you buy life insurance, the better it is for you. Age and health are significant factors in determining life insurance premiums. Generally, the younger and healthier you are, the lower your rates will be. Buying life insurance in your 20s or 30s can lock in affordable premiums for many years or a lifetime.
- Life insurance policies are tailored to match your situation: The two main types are term life insurance and permanent life insurance. Term life is generally more affordable. It provides coverage for a specific period, such as 10, 20, or 30 years. Permanent life insurance includes whole life and universal policies. Although more expensive, it provides lifelong coverage and builds cash value, making it a valuable tool for wealth-building or estate planning.
- Plan for the future when considering coverage. In evaluating your life insurance needs, consider current and future obligations. Your financial responsibilities are likely to grow when you start a family or build a business.
- The coverage provided by your employer may not be enough. Many employers offer life insurance as part of their group benefits package. Although this is a good place to start, it may not be sufficient. Most employer-provided life insurance policies offer limited coverage, which may fall short of providing for your family’s long-term needs. Furthermore, it is usually not portable, so you could lose it if you change jobs.
Securing life insurance is about protecting your assets, ensuring your family’s financial stability, and gaining peace of mind knowing you are prepared for the unexpected. Meet with our experienced agent for friendly and knowledgeable assistance in purchasing a life insurance policy that suits your budget and needs.