4 Things Women Need to Know About Life Insurance

Last updated Mar 01, 2022 | By Robert Wilson
4 Things Women Need to Know About Life Insurance image

As much as we can hope to be around for years to come, we can’t see into the future. There’s no way to know what tomorrow will bring, let alone 10-years down the line. For that reason, you need to give yourself and your family peace of mind. With the right life insurance plan in place, you can protect your family no matter what the future holds. Here are 4 things you need to know about life insurance.

1. Life Insurance is Cheaper for Women

Just 56% of women have life insurance, compared to 62% of men, despite life insurance being cheaper. In all states except Montana, women have lower premiums compared to men, due to their longer life expectancy. So, how much is the average premium? Generally speaking, a healthy 30-year old woman can purchase a 20-year $500,000 policy for just $17 per month.

2. No Income Doesn’t Mean No Life Insurance

Lots of people think that the only person in the family who needs life insurance is the breadwinner, but that’s completely wrong. Being a stay-at-home parent is a very demanding job, and the cost of replacing that would be huge. If all the work a stay-at-home parent does was outsourced to a housekeeper, nanny, or au-pair, for example, it would cost a yearly amount of around $113,000.

But, with a practical life insurance policy in place, families will still be able to meet their day-to-day needs if the stay-at-home parent is no longer around.

3. Employer-Provided Life Insurance Isn’t Enough

Lots of employers offer life insurance as a job perk, but more often than not the policies are inadequate. Life insurance plans provided by employers usually offer just one or two times your annual salary, which isn’t nearly enough if you’ve got a spouse or children. Additionally, if you leave your job, your coverage will end too. To stay safe, enjoy the extra coverage your work provides alongside an individual life insurance policy bought outside of work.

4. You Need 5-10 Times Your Annual Salary in Coverage

It can be hard to figure out how much coverage is the right amount, and usually, that’s a question left for the experts. Those who are in-the-know, recommend buying a policy that covers 5-10 times the amount of your annual salary. However, protecting your loved ones by just supplementing your income might not be enough. Consider your child’s college savings plan, your mortgage, among countless other expenses. But, don’t worry, try this free online life insurance calculator, it can be extremely helpful in determining the amount of coverage that is right for you.