life insurance women

4 Reasons Why Women Need Life Insurance

As women, you have redefined your roles at work and at home. Because of that, you have more options than ever, from being full-time mothers to having full-time careers outside the home and everything in between.

While women strive to achieve financial independence and work-life balance, there is one crucial piece missing in their financial plan…life insurance.

You have thought about health, auto, homeowners and even business insurance but life insurance seems to get placed on the back burner. And while the numbers have risen over the past few years, LIMRA states that 48 percent of women have zero life insurance.

According to an article posted by, there are four key reasons why women need life insurance – now more than ever:

  1. You will gain financial value, regardless of employment or marital status.

The fact is, many of today’s women make more money than their spouse – or – they are a single parent and head of the household. Statistics show that a stay-at-home mom’s valued contribution is approximately $120,000 a year based on the duties performed (childcare, housekeeping, cooking etc.).

  1. Life Insurance replaces your income

Because your contributions bring value, they should be protected – right? Loretta Worters, Vice President of III (Insurance Information Institute) states that if a stay-at-home spouse dies, the family would need someone to handle the household duties. As you know, that’s no small task and the cost could be substantial. A life insurance policy would help to cover those expenses.

A life insurance policy would also help to support the individual (children and/or partner) in case of death and will help cover costs of the funeral, anything related to it as well as everyday living expenses.

As unpleasant as it may seem to think about this type of scenario, it’s our responsibility to make sure your family doesn’t have to worry about your death expenses on top of coping with your loss.

  1. Life insurance protects your interests.

As a single woman without children, you still need life insurance if you carry a high amount of debt, have a co-signer for a loan or you take care of an aging/ill parent or family member because it will help protect your estate, the co-signer and those you care for.

Typically, the executor of your estate would sell whatever they can to help pay off those debts when you die but if there is a co-signer on a loan, then they are responsible for repaying it.

If none of these apply to you, keep in mind that it is always easier and less expensive to purchase a policy when you’re young and healthy!

  1. Life insurance is less expensive for women.

Because women typically live longer than men and life insurance premiums are priced largely according to the average life expectancy for gender and age, women pay less than men. In fact, on average, women outlive men by approximately five years. Women tend to develop cardiovascular problems like heart attack or stroke later in life than men do. This longer life expectancy results in lower life insurance premiums.

Now that we have established a foundation for the importance of having life insurance, you’re probably wondering how much or what type of life insurance you will need. Here’s a great tip for determining how much:

Multiply your income by anywhere from three to fifteen times to arrive at the amount of life insurance you should consider buying. For example, if you are 40-years-old, making $50,000 per year at your job, you will want to look at buying a policy that’s worth about $750,000. This general rule of thumb varies by age so it’s important that you speak to a life insurance agent.

You can also select a term-life policy at a cheaper premium for a specific amount of time or you can select a permanent plan that will last the rest of your life and also provide you with additional financial planning options.

The type of policy you choose and the amount will depend on your goals, budget, needs and your family situation. A young, single woman’s needs will be much different than an older, married woman raising a family.

So, what’s the bottom line? The key to your financial success and security depends on not overlooking this very critical piece. To learn more and see how Life Insurance may fit your financial situation, call Baty & Associates at 713-468-0700 or eMail:

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