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A century ago in America, women weren’t able to get insurance policies because they weren’t legally allowed to own property. Through a hundred years of hard-fought battles for financial and personal independence, women now contribute over $7.6 trillion to the nation’s economy each year. In fact, if all paid women in the U.S. took just one day off, it would negatively impact America’s GPD to the tune of $21 billion.
In spite of their increased participation in the economy and labor market, women in America today are still startlingly underinsured when it comes to life insurance. Consider the following statistics from the Insurance Information Institute:
- Almost half (43%) of adult women have no life insurance
- Women now comprise 57% of the U.S. labor force, but they carry 31% less life insurance than their male counterparts
- On average, women have $129,800 of individual life insurance compared to men’s $187,100
- Women with high personal incomes ($100,000 or more) are less likely to have life insurance than men at the same income level.
Obtaining term life insurance coverage is a smart investment for everyone—it can help individuals and their families build financial resilience and gain peace of mind and is one of the least expensive types of life insurance available.
But, did you know this coverage is even more affordable for women? Because women tend to live approximately seven years longer than men, their policies are usually less expensive than their male counterparts.
With level term life insurance, your premium stays at a fixed rate through the duration of the specified level term of the policy and if you get this insurance at a young age, your monthly payments will remain low until the end of the level term period—often 30 years or even more for younger insureds.
Women play many roles, from primary breadwinners to stay-at-home moms (and sometimes both at the same time). Here are five life situations women often find themselves in that make investing in term life insurance a smart money move:
1. You’re the primary breadwinner
A 2018 survey found that 54% of women are the primary breadwinners in their family, which is up from 42% in 2015. The study also found 30% of women are married breadwinners who are producing more than half of their household income.
If you’re the primary income earner in your household, the loss of that income would be a significant hardship for your family to bear if anything were to happen to you. Obtaining a life insurance policy helps ensure your family can maintain their quality of life if they had to get by without your income.
2. You’re a stay-at-home-mom
Between meal prep, chauffeur duties, grocery shopping, and the countless other tasks, experts estimate the median time worked for stay-at-home moms reached 106 hours per week during the COVID-19 pandemic. That’s a fair market salary equivalent of $184,820.
If you’re a stay-at-home mom, you know how hard (not to mention expensive) it would be for your family to find help covering your responsibilities. A life insurance policy would help cover those costs.
3. You’re in your 20s or 30s
Even though you may be young and healthy, there is a certain amount of planning that you should do now to ensure your (and your future dependent’s) future is protected. If you’re in your 20s or 30s, purchasing life insurance coverage should be a part of your current financial plan.
There is a cost benefit of buying early—the younger you are, the lower the policy price will be. It’s kind of like the early-bird special of life insurance! Because you are further away from death (statistically speaking) than older consumers, you are considered a lower risk for underwriters; therefore, your policy will be less expensive.
4. You’ve recently purchased a home
Let’s say you’ve purchased a home with a 30-year mortgage and are interested in securing life insurance. If one of your biggest considerations is ensuring your mortgage balance will be resolved after your passing, then you may want to consider obtaining a 30-year term insurance policy.
5. Your personal or professional role is changing
From getting married or divorced to changing careers or income levels to caring for aging parents, life can throw women a lot of curveballs. As your relationships and professional roles evolve, your financial planning and insurance needs may change.
When your life circumstances shift, consider reviewing your policy options to make sure you have coverage suited to your current situation.
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