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Men have more life insurance policies than women, which doesn’t make a whole lot of logical sense.
Life insurance is essential for anyone who has dependents, and women tend to have more people who rely on them. Life insurance is a critical ingredient in our world where women are often providers for their families, and simultaneously provide a larger share of caretaking responsibilities. Not only will your income be lost after your death, but all the free labor you provide as a caretaker will have to be replaced.
Buying life insurance as a woman is cheaper and cost-saving when compared to men, because women tend to live longer. That means the life insurance company is less likely to have to pay out, and if they do, you’re likely to have paid more in premiums as you’ve lived longer to do so.
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Life Insurance For Women: What Does It Mean?
Life insurance is a form of insurance that covers the loss of life. After you pass away, the insurance company will pay money to your beneficiaries. It works as a contract between you (the insured) and an insurance company (the insurer). The insured pays a certain amount of money known as a premium to the insurer in exchange for claims known as death benefits.
Types of Life Insurance
Fundamentally, there are two types of life insurance: term and permanent. Term insurance covers the insured for specific periods, usually five to thirty years. On the other hand, permanent insurance is whole or universal as it covers the insured’s entire life. Aside from being different by nature, both also carry different premiums.
Since term insurance only covers the insured’s loss of life for a limited number of years, the premiums are affordable. On the other hand, permanent insurance costs more in premiums.
Women’s life insurance generally has the same coverage as men’s. Your beneficiaries can use the death benefit for anything, including:
- Funeral costs.
- Bills and expenses of loved ones.
- End-of-life debt settlement.
- Education for your child.
- Medical expenses.
- Care for your dependents.
The cost of women’s life insurance varies from one insurer to another. So, it’s usually wise you consider the type of insurance — whether permanent or term — and the insurance company you’ll be dealing with. You’ll also want to consider your age, health, and lifestyle.
Why Do Women Need Life Insurance?
Dying means leaving several things behind. This could be a child whose education depends on you, or a loved one who’s been dependent on you over the years. Life for the people around you would be difficult without life insurance, especially if you’ve been the breadwinner. The best way to solve the financial mess of your absence is to get insured.
Whether you’re married, divorced, a single mother, or a stay-at-home mom, getting a life insurance policy would do you good. At the very least, the policy covers your burial costs, outstanding debts, and property administration. Other reasons you need life insurance include:
- Long-term financial independence.
- Coverage for critical illnesses.
- Leaving a lasting legacy.
- End-of-life saving for the future.
- Potential tax benefits if you provide policies to your employees.
- Whole life policies with cash benefits may make some of your death benefit available in retirement.
Investing in life insurance as a woman is a necessary form of financial protection. Beyond your dependents, life insurance can serve as a wealth buildup and backup for any post-retirement financial difficulties.
How Can Women Save On Life Insurance?
Although life insurance is more affordable for women than men, affordability is subjective. Cost remains one of the key reasons women provide for not having a life insurance policy. If this is your situation, the following are ways you can wrangle a lower rate and save on your insurance policy:
Begin With Term
Term life insurance policies cover insurance risks and mitigate against loss until a specific date. They offer fixed death benefits at fixed premiums for a predetermined time, usually between five to thirty years. Since it’s partial and not whole, the premiums are generally lower than universal insurance. Buying term is one of the many ways to save money on your policy.
People take out term insurance policies with the perception that they may die within a given period. But when they don’t, the premiums paid to insurers turn out to be profit for them.
Another way to save on insurance policies is to get quotes from many different insurers. There are several insurance companies, and you may get overwhelmed with the special offers and benefits. Your first instinct might be to stick with the first insurance brand that comes to you, but really you should shop around.
Comparison shopping allows you to see the ratings of each insurance company you’d be dealing with. Better ratings means the company is more reliable. Comparison shopping also provides you with the insight to choose the most cost-effective insurer and save on your policy.
Buy Your Policy Early
Factors such as age, health, and income inform the premium you’ll be paying under life insurance. Age is even more emphatic among these factors. The older you get, the more premiums you tend to pay. Therefore, it’s best to buy a life insurance policy early to secure lower premiums. The best period is between your 20s and 30s.
Being young when you get a policy also provides you with reasonable rates should you develop any health issues during the coverage. It’s a game of duration for insurance companies. The longer insurers expect you to live, the lower their chances of paying out. Thus, it’s best to get your plan early.
Pay Premiums Annually
Depending on the insurer you’re working with, you can pay premiums once or in installments. If in installments, you’re allowed to pay monthly, quarterly, or semi-annually. However, each installment payment comes with charges.
If you want to save on your insurance policy, you can pay your premiums annually to avoid charges. Your annual payments often are your actual payments without any punitive fees. If this proves challenging due to financial difficulties, make sure you understand what the monthly payments would be.
Take Care Of Yourself
Life insurance is intrinsically linked to age and health. Your lifestyle decisions inform your health and your insurance rates. So one of the easiest ways to keep your insurance costs low and save is to improve your wellbeing by doing things like quitting smoking.
Your overall health and wellbeing are how insurers base their premiums and claims. This means if you have a rough lifestyle, you may be grouped into a different rate class with high premiums. But if you maintain your health through a positive lifestyle, you may find yourself in a favorable rate class with fewer policy costs.
Look Into Your Buying Decisions
Budgeting is crucial regardless of your status — single, married, or divorced. Moreover, your budgeting skills should reflect your buying decisions and not the other way round. Insurance salespeople do everything to persuade you to buy more than you need. They make several assumptions about the whole life insurance concept and associate it with your life. While that’s their work to do, it’s your responsibility to remain focused on your budget.
How much insurance you need is up to you. You should make the assessment and decisions about how much coverage you need. Whether you need insurance for your child, loved ones, burial costs, or to cover outstanding debts, you shouldn’t leave the process to your insurer.
Life Insurance for women is essential
Life insurance for women is one of the most affordable, flexible, and essential insurance policies. It’s also one of the many policies you can save on. You can get premiums at reduced rates by being objective with the policy you want and the insurance company you’ll be dealing with. Most importantly, you can be intentional with yourself by taking care of your health and comparison shopping.