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The Importance of Life Insurance for Women

Updated: Apr 19, 2022

In 1895 women were not considered insurable. The care of the family and management of the household was typically the wife’s responsibility while her husband worked. But very little financial value was placed on her contributions to the home. While much has changed in women’s lives, the need for financial security through life insurance has not. In fact, it is actually more important than ever.

Research indicates that women are now the sole breadwinner in more than 40 percent of American households, and they contribute to the family income in another 20 percent. This indicates the importance for these women to protect their families in the form of life insurance in the event of the worst-case scenario as income replacement is one of the primary reasons many people purchase life insurance.

In the event of a loss, the financial protection provided by life insurance protection could also help provide for services like childcare, and household management such as cooking, cleaning, home maintenance, and final expenses in households with a stay-at-home mom. estimates the median salary for all the different jobs at-home moms perform to be around $175,000 a year.

Life insurance is also a way to leave a legacy for your children, a legacy that could cover college tuition, pay for a wedding, or provide a down payment for a first home. Here are some of the top benefits of life insurance for women.

Stay-at-home Mom - There is a misconception that since a stay-at-home mom may not bring in any income, they do not need life insurance to replace it. However, consider all the jobs they do and the cost of outsourcing those jobs. For instance, cook, housekeeper, childcare, driver, laundress, just to name a few.

Single Moms - Life insurance can provide money for a child, and the people who would raise them if needed. It could also pay any amount of debt remaining.

Primary breadwinner - Helping the family to continue their current lifestyle and ensure they are able to pay the bills without you.

Women business owners and entrepreneurs - After creating a vibrant, successful business, you may want to consider a proper buy-sell agreement funded with life insurance.

Death benefit protection - The most obvious benefit from life insurance is the death benefit, a lump sum payout that goes to your beneficiaries when you pass on.

Cash value growth - Cash-value life insurance can provide you with an income stream later in life that can be used for whatever you want. The cash value grows tax-deferred and can be accessed tax-free via life insurance loans.

Living benefits - Many policies have an accelerated death benefit that allows you to tap into a portion of your death benefit if you are terminally ill. Further, some insurance policies include a chronic illness rider that allows you to access a portion of your death benefit if you are diagnosed with a chronic illness.

Life Insurance provides much-needed funding when tragedy strikes. Most people are not financially independent. It is smart to explore your options before ruling out life insurance. The risk of leaving anybody in a bind is too great, and the results can be devastating. To find out more about your options with whole-life insurance, universal life insurance, and term insurance - call us today at 800.682.2017.


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