Why Life Insurance is Vital for all Women

ownerWhether they work at home or away from home, women are often vital contributors to their families’ finances. However, many do not realize how important it is to buy a life insurance policy. If women who contribute to the family finances were to die, the loss of that income would likely alter survivors’ lifestyles considerably.

Recent research shows that more than 40 percent of adult women do not have any form of life insurance. Among those who did have insurance, most did not have adequate coverage. The majority of insured women had about 25 percent of the amount of coverage they would need to properly provide for survivors. It is estimated that women who are primary financial providers carry about 30 percent less life coverage than males who are primary providers. According to research from 2007, more than 25 percent of wives earned more than their husbands when both had jobs. This number is up from almost 18 percent 20 years prior.

About 100 years ago, women were not able to buy life coverage. However, they are fully able to do so today but still fall short. Financial experts stress the importance of life insurance as a vital part of planning for the future. In the following situations, life coverage can be a very important tool:

Replacing Income For Surviving Dependents
When a woman has dependent children or relatives and is a sole provider, having life insurance provides a replacement for lost income in the event of her untimely death.

Providing Inheritance For Heirs
Women who buy life insurance will create money to pass along to chosen survivors. This money can be used by children who plan to attend college or for any other expenses they may have in the future. There are a wide variety of monetary amounts to consider assigning to a policy.

Covering Final Expenses
Life coverage will pay for burial or cremation costs. It will also cover estate administration costs, probate expenses, medical bills and other debts not covered by health insurance.

Paying For Federal And Estate Taxes
Estate taxes can be paid with life benefits. This will prevent heirs from footing the bill for such expenses. Without life insurance, heirs may have to pay out of pocket for some expenses or sell inherited items to compensate. While recent changes in the federal laws for estate taxes may lower the impact on some individuals, some states are actually increasing their demands to offset these reductions.

Making Large Charitable Contributions
When women make charities beneficiaries in their life insurance policies, they are able to leave sizable amounts to these organizations. For those who do not have family or friends they want to name as heirs, this is a good way to leave a positive footprint in the world.

Replacing Primary Caregiver Services
In addition to working, many women contribute to household chores and tasks related to raising their children. If a surviving spouse is left to work alone and pick up the slack for these tasks, the need for outside care will arise. This will be costly, so a surviving spouse will surely need funds to make up for the lost help.

Creating A Savings Source
There is a cash value associated with some types of life insurance coverage. If it is not paid as a death benefit, the policyholder may withdraw contributed amounts when needed. For this reason, buying a cash-value policy will not only provide the security of life insurance but also a monetary safety net. In addition to this, the credited interest is tax deferred. When paid as a death benefit, it is tax exempt.

Although it is vital for working women to have life coverage, it is also important for mothers who stay at home. In the event such a woman died, her working husband would have extra expenses for child care and possibly home maintenance. Women should never underestimate the importance of life insurance and how valuable their contributions are to their loved ones. To learn more about what options are available, discuss concerns with an agent.

 

About Brian Hendricks

Brian Hendricks is the President of Fidelity Insurance Group. Brian started Fidelity in 2003 with 0 clients. Today Fidelity Insurance Group is a Premier Independent Insurance Agency in Florida with over 3,000 families and businesses insured. Brian currently serves on advisory boards for 2 of the largest property insurance companies in Florida. Knowlege, Integrity, and Committment are his and his agency's guiding principles.
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