Life insurance is a financial safety net that many women feel is not a priority
Life insurance is a major component of many insurers’ product shelves, but according to True Blue Life Insurance President Brian Greenberg, it’s not a priority for many people, especially women. “While other types of insurance such as health, auto and homeowners is often top of mind, life insurance tends to slip through the cracks,” he said in an article published on GroundReport.
Citing the Life Insurance and Market Research Association (LIMRA), Greenberg reported that 48% of women do not have any type of life insurance. “While this number has [improved by] about 5% in recent years, it still isn’t high enough. Now more than ever, women need life insurance,” he emphasized.
One reason is that life insurance compensates for a woman’s financial value, regardless of employment or marital status. More and more women are earning more than their spouses; stay-at-home moms, meanwhile, are estimated to contribute approximately US$120,000 per year, based on performing day-to-day duties such as childcare, cooking, and housekeeping. Those contributions would be covered by life insurance in the event of death.
Life insurance is also useful for women who are not married or have children. Those who carry a lot of debt, have a co-signer for a loan, or are caring for an aging or ill parent or family member would benefit because life insurance can help protect their estate.
Women also have an advantage compared to men when they apply for life insurance. Since women have a longer life expectancy than men (outliving them by five years generally) and tend to develop cardiovascular problems later, providers would typically be willing to charge them a lower premium.
Of course, there are other factors that have to be evaluated: the client’s financial goals, needs, budget, and family requirements. To determine the amount of coverage needed, Greenberg cites a rule of thumb that recommends from three to 15 times the amount of income or financial contribution a female client makes.
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Citing the Life Insurance and Market Research Association (LIMRA), Greenberg reported that 48% of women do not have any type of life insurance. “While this number has [improved by] about 5% in recent years, it still isn’t high enough. Now more than ever, women need life insurance,” he emphasized.
One reason is that life insurance compensates for a woman’s financial value, regardless of employment or marital status. More and more women are earning more than their spouses; stay-at-home moms, meanwhile, are estimated to contribute approximately US$120,000 per year, based on performing day-to-day duties such as childcare, cooking, and housekeeping. Those contributions would be covered by life insurance in the event of death.
Life insurance is also useful for women who are not married or have children. Those who carry a lot of debt, have a co-signer for a loan, or are caring for an aging or ill parent or family member would benefit because life insurance can help protect their estate.
Women also have an advantage compared to men when they apply for life insurance. Since women have a longer life expectancy than men (outliving them by five years generally) and tend to develop cardiovascular problems later, providers would typically be willing to charge them a lower premium.
Of course, there are other factors that have to be evaluated: the client’s financial goals, needs, budget, and family requirements. To determine the amount of coverage needed, Greenberg cites a rule of thumb that recommends from three to 15 times the amount of income or financial contribution a female client makes.
Related stories:
Life insurance needs to become more attractive to consumers, says Manulife executive
$20 trillion life insurance ‘protection gap’ needs addressing, says Swiss Re Canada CEO
