One of the most heart-wrenching conversations that a financial professional will have is one with an elderly widow whose husband recently died. The lady will admit that her husband took care of all the financial matters. She does not know what to do now that he is gone. It’s terrible, but this is also a reminder that a woman should not rely on somebody else to take care of her finances. She must be in control and needs to make decisions that will affect her life and the lifestyle she wants to have. In this article, we will discuss term life insurance and its importance for women.
Why Are More Women Getting Life Insurance?
Life insurance is ordinarily part of an estate, but there are other reasons for taking out a policy. There are circumstances where a term life insurance for women can spare parents or other survivors an expense that can take a sizable out of the estate.
Why Do Women Need Life Insurance?
Financial planning has many features, and stability is a primary objective. Life insurance is part of the financial wellness equation. It is coverage that a woman can use to protect her loved ones from heavy expenses. There are several reasons to buy life insurance for women, irrespective of your lifestyle, relationship status, and financial standing.
Working mothers contribute a lot to their family’s financial health. Your income can help cover living expenses or provide for the kids’ college education. What if it suddenly goes away or savings aren’t there due to your unexpected passing? That’s where insurance for women chips in to protect your family’s lifestyle against all the odds.
A woman who is a stay-at-home mom might wonder why even bother with term life insurance. After all, she is not the primary wage earner in the family. However, being a housewife does not mean death does not have an impact on the family’s financial wellness.
The loss of a mother can mean that the household must pay for childcare. There are other benefits that are taken for granted, but these all can turn into expenses if the stay-at-home mother passes away. Regardless of what cynics may say, a stay-at-home mother is important.
A single mother is sole support for children. Unexpected death leaves those youngsters in a vulnerable financial situation. If the woman had term life insurance in place, it can pay for education such as college, cover a mortgage, and provide the children with the financial security they had with their mom.
Covering debt and providing for survivors is an important part of any financial planning. Term life insurance for women is ideal with those types of situations because a woman can buy a sizable amount of term insurance coverage at a low premium.
The Family Caregiver
If you provide care for both your children and elderly parents, we know it can be overwhelming. Apart from adult daycare and extra medical expenses, you run a household, care for your kids, and save for their education. With life insurance for women, you can stay assured that these expenses will never cease even if you aren’t there.
College loan debt is a major issue for many young single women. They ask their parents to cosign for a college loan, which Mom and Dad will ordinarily do without question. Tragedy strikes when least expected, and the daughter dies in a traffic accident or due to a medical condition.
Parents are left with sizable loans that they must pay off because they cosigned for it. The daughter who takes out a term insurance policy equal to the college debt’s size is doing her parents a great service.
What Determines the Life Insurance Costs for Women?
That is an excellent question. Several factors go into determining how much a person is going to pay for coverage. We have already discussed physical health and smoking. There are a few other things that will impact the cost of insurance for women.
- Mental Health. High levels of depression or bipolar disorder can create higher premiums.
- Age. It’s always better to buy term life insurance when you are young. Age brings with it health conditions that make a buyer more of a risk.
- High-Risk Hobbies. You might like rock climbing or extreme sports, but life insurance companies hate those things. The chances for a life-threatening accident are high, which means that the premium you are going to pay will be correspondingly high (hobbies like swimming or jogging are nowhere near as risky).
- Pregnancy is not going to cause a rise in premium rates if it is a healthy condition. Complications might result in higher premiums, depending on the insurance company.
- Transgender Women. The policy rates don’t change, but underwriters will consider the factors like hormonal treatments or medical conditions peculiar to transgender people.
- Fertility and IVF Treatments. The premium costs can vary if you undergo any fertility or IVF treatments.
- Breast Cancer. Underwriters will deeply analyze your family and medical history to determine the breast cancer history. They may even ask for a BRCA test or mammogram for analyzing the gene.
How to Provide for Minor Beneficiaries?
It would help if you determined the beneficiaries when buying life insurance for women. But, if you have minor children, you can’t make them a beneficiary, though you can still protect them financially. Name an adult to supervise the child until the age of 18. Mostly, people name their spouses as the beneficiary, but you can name another person.
The ideal way is to assign a primary beneficiary and a contingent beneficiary to ensure that financial help will not stop even if the primary beneficiary can’t accept the coverage payouts. If you are a single mother without any adult beneficiary to look after your child, create a trust to look after the funds.
What Insurance Will Work for You and How to Choose It?
Insurance companies will use television and social media to promote their policies. The message makes it all seem amazingly easy and convenient, especially if online purchasing is allowed. All you must do is fill out the application, press the submit button on your keyboard, and have coverage.
We strongly urge anyone who is shopping for term life insurance for women to be careful. The advertising will only discuss the good things about the policy and will not say anything about problems. You can easily rush into the wrong type of coverage.
The underwriting guidelines will dictate coverage and premium of the life insurance policy. Many people do not understand underwriting and ignore this important part of an insurance product. The health questionnaire you are required to fill out might disqualify you because of a health condition.
Not all insurance companies will prohibit a person was unhealthy from getting coverage, but you can expect the premiums are going to be high. Insurance for women does not require a medical examination, and many term insurance policies have guaranteed acceptance. Again, anticipate that you are going paying a higher than ordinary premium.
Terms are often 30 years or more, but not always. There are insurance companies that limit the years of coverage based on the person’s age. For example, term insurance policies ordinarily end when a person reaches 90 years of age, but products will become nonexistent when a person celebrates his or her 80th birthday. What happens then is that a person may have to purchase a whole life insurance policy to replace the expired coverage. This is good coverage, but it is expensive, and the older you are, the higher the premium goes.
Many insurance companies offer life insurance for women. Some stand out as particularly advantageous to women. AIG is one, and State Farm insurance is another (N.B. We are not trying to endorse either insurance company over others. What we have said is based on the reputation both companies have achieved in the industry.). A tip about buying any insurance is when you bundle a book of business with the insurance company, you will be able to get lower premiums.
Should You Choose an Independent or Joint Policy?
Whether you want to buy a joint policy with your partner or separate insurance, decide wisely after considering the flexibility you need and how you want your beneficiary to be paid off.
If you buy policy independently, you can tailor according to your specific needs and requirements. The joint policy offers lesser flexibility, but it builds better cash value.
Another point to consider is the event of separation or divorce. In this case, splitting the policy has no benefits for either of you. Hence, most of the people prefer independent policy. If you want a cheaper option, though, here are the types of joint policies you can buy:
- First, to die policy that pays off when the first holder passes away.
- Second to die policy that pays out if both the holders die. The beneficiary gets the death benefits only after the last survivor on the policy passes away.
You might have some questions about our services, and we want to answer them! We encourage you to get a hold of us at your convenience. We will use a telephone, email, texting, and other means of communicating with you. You can count on us to do the best for you and your family.