It may come as no surprise to many that, historically, access to life insurance for women has been a challenge still present today. Despite significant progress in closing the gender pay gap in recent decades, a 2021 report found that a majority of women still undervalue their financial impact and are often underinsured or lack coverage completely. With women making more money than ever and awareness of their significance both personally and professionally increasing, women of all ages need to build their financial literacy so that they can secure the right life insurance policies.
For Women’s History Month, we are advocating to debunk some of the myths surrounding life insurance for women to help educate and encourage them to start proactively preparing for a more financially secure future. Here are 5 key, lesser-known, facts that all women need to know.
1. Life Insurance Can Be More Affordable For Women
An important fact that many people aren’t aware of when deciding whether or not to get life insurance is that women can secure cheaper plans than their male counterparts. On average, women pay 24% less on their coverage for a variety of reasons. Statistically, women live longer than men and tend to have a more optimistic health outlook. Through the lens of an insurance company, this means women are usually a safer alternative as there is a real possibility that they will outlive the term of the policy. Furthermore, term insurances are generally more affordable. Since some of these insurances can cover even decades, they are a great alternative to save even more money.
2. The Younger, The Better – Purchase As Soon As You Can
Life insurance is an investment that is best handled early while potential health concerns are less likely to impact the cost. Age affects all of us differently at different times. The longer you wait to secure a policy, the higher the odds are that new conditions will put you in a higher, more expensive category for insurance. For women especially, lifestyle and social situations change fast. Whether it be a pregnancy, loss of a job, or a family member relying on you for active caregiving, the earlier you find the right policy, the better (and more affordable) it will be.
3. Coverage Through Work Is Not Always Enough
Group life insurance is a popular alternative offered by employers and it can even be free in certain circumstances. Unfortunately, that doesn’t mean it will be the policy you need. Employer coverage is a good idea on paper, but your policy will be jeopardized if you switch employers or lose your job. The COVID-19 pandemic brought this problem to light at full force. As both women and men lost jobs at unprecedented rates and had to shift to stay-at-home parents in their families, their life insurance plans were lost with them.
Ultimately, group policies have clear limitations when compared to the coverage an individual life insurance policy can offer. Work-related insurance is tied down to you keeping your job, which is a serious concern in today’s job landscape. Investing in personal insurance has many major advantages, such as being able to plan its intended use for the foreseeable future and personalized assistance for any questions you may need to be answered in the process.
4. Pregnancy Or Health Issues Should Not Prevent You From Applying
A major misconception that prevents some women from pursuing insurance is the thought that if they are pregnant or have a pre-existing condition they won’t be offered reasonable rates. However, as we’ve seen so far, applying as soon as you can and applying as a woman is generally more affordable, even when considering these additional factors.
Pregnancy and pre-existing conditions are not enough reasons to see a dramatic spike in costs and viability. If anything, they should be considered a stronger motivator to apply. Further health complications following pregnancy or other serious conditions like breast cancer will make the application process more complicated and stressful as you deal with health concerns. Female applicants should also keep in mind that agencies and brokers exist for a reason. With the right life insurance partner, you will be able to find a plan that fits your budget, your needs, and your family’s needs.
5. Don’t Underestimate How Much Coverage You Need
One of the most common setbacks we see when discussing life insurance for women is the underestimation of worth. Whether you are the breadwinner, a single mother, or a stay-at-home mom, it is imperative that your insurance can cover all of your and your family’s financial needs. Breadwinners and single moms likely understand this at face value, since they are the main or sole source of income for their family. But this also applies to stay-at-home moms. The time spent with your family is vital, and stay-at-home moms contribute greatly to their family economy and would leave a huge gap if they were gone without insurance. Determining the exact amount of life insurance you need will depend on many personal factors. Working with a provider that has access to a wide variety of carriers and options will allow you to make the right decisions so you aren’t underinsured.
Key Takeaways
The financial and social impact of women today is more prevalent than ever. Therefore, life insurance is a priceless necessity that women of all ages should prioritize to protect the financial future of themselves and their loved ones. Our life insurance agents specialize in working with your unique needs to find you the best policy within your budget. Contact us today to get started.
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