Women are now the time to bridge the gap between men and women in insurance coverage. Only 47% of women have life insurance, compared to 58% of males, in the report 2021’s Insurance Barometer Study by Life Happens and LIMRA Insurance industry associations. However, women are equally likely to require life insurance coverage as males.
“It’s crucial for women to appreciate their contribution to their families and to be financially secure in the event of a disaster,” says Brittney Burgett, the head of communications at Bestow, the online life insurance firm. “If you have family members in your life who depend on you to ensure their wellbeing, You’ll likely require the life insurance.”
If you don’t own life insurance or do not have enough, here’s what you should be aware of.
Life Insurance is Cheaper for women than men.
Fortunately, the pink tax does not affect life insurance, and it’s better to be female in this instance.
“The cost for life insurance policies is determined by the actuarial evidence,” Burgett says. “Statiscally, women are more likely to live longer than men as well as being more likely live beyond the policy’s time frame. This is the reason why insurance is typically more affordable to women.”
For instance, the average monthly cost of a 20-year life insurance policy with a death benefit of $500,000 for a healthy 35-year-old woman who does not smoke is $25.23, According to Policygenius. The cost for that identical policy to a healthful 35-year-old male who does not smoke is $30.03 per month.
Consider that choosing a short-term life insurance policy instead of an annual policy is the cheapest option to secure coverage. Also, purchasing earlier rather than later can help you obtain low-cost life insurance since the yearly price increases when you delay applying. In addition, waiting to use is risky as you may have a health issue that could affect the life insurance quote.
Check Your Insurance Needs
Contact an insurance professional. They can assist you in assessing your insurance needs and providing you with information on the policies available.
Don’t assume that the coverage you have through work is enough.
Utilizing the benefits of a group life insurance plan at work could be a cheap or cost-free way to secure coverage. However, you must have an individual policy to form the basis for your insurance policy. It is common not to have supplemental insurance at work if you quit your job.
“If you are in need to protect your financial assets it is important to be protected,” Burgett says.
Additionally, the life insurance you can obtain through work typically amounts to one or two times the annual earnings. Burgett says this won’t be enough to meet life insurance requirements, particularly when you own a house and have kids.
To figure out the amount of life insurance you require to purchase, you must add the debt and costs you wish to cover, like a mortgage or college tuition for your children. Add the amount you currently need to pay for these expenses, like your existing college and life insurance savings. The difference will give you an estimate of the amount of life insurance you’ll need. You can also use this Calculator for Life Events to obtain a reliable estimation.
You’ll need life insurance even If you’re not a breadwinner.
Even if you do not earn a salary, it is still necessary to have life insurance if you are a stay-at-home mother. This is because you provide substantial financial support to your family, which your spouse or partner will be required to cover in the event of a catastrophe that occurred to you. A life insurance payout could aid in covering these costs and also provide financial security for your family.
Do not worry about it: You can obtain life insurance when you don’t have an income to replace. “Insurance companies understand there’s an advantage to being parents who stay at home,” states Erin Ardleigh, founder and president of Dynama Insurance, an independent insurance broker located in New York. She claims she’s had no difficulty getting coverage for parents who stay at home, even for large amounts.
You can apply for insurance while you are pregnant.
There is a common misconception that women shouldn’t take out life insurance when pregnant. Ardleigh claims she’s had clients apply for life insurance during the eight-month pregnancy and still be eligible for the most affordable rates for life insurance.
Ardleigh states that waiting until after birth can also be an error to file for coverage.
This is because women may be diagnosed with pregnancy-related conditions like gestational diabetes or other conditions that develop after giving birth, like postpartum depression. These conditions can make it difficult to obtain coverage or an affordable rate.
Additionally, after having an infant, “the last thing you need to think about is paperwork and taking an insurance check,” Ardleigh says. “This is something you could do prior to the birth of your baby.”
Do not let health issues stop you from applying for
In addition to pregnancy, you may be suffering from health issues that you are afraid will stop you from being covered or make it costly. As an example, suppose you’ve been diagnosed with breast cancer and think that no insurance company will offer you a policy. The positive side is that it’s possible to purchase life insurance following cancer–or in the case of other medical issues.
The most important thing to do for health-related issues is to locate a reputable Independent insurance agent. Independent brokers are associated with various insurance companies instead of just one. They know which will be more likely to cover specific cases or provide the best rates to those who suffer from a health issue. For instance, Ardleigh says she had one client with postpartum depression and was denied coverage when she tried to apply with only one company. Ardleigh secured the client insurance at a reasonable rate after identifying insurance companies tolerant of her medical background.
Life Insurance can be Simple and Fast.
“What is making buying life insurance more convenient than it has ever been fast and simple is to take off your list of things to do,” Burgett says. A growing number of companies employ a method known as rapid underwriting, which can make the process possible in certain instances to be approved for insurance in just a few minutes, and without needing a medical exam for life insurance.
Bestow, for instance, offers a term life insurance plan that is 100 100% digital and never requires an exam for medical reasons and will be applied for in less than 10 minutes for and be approved. Various other insurance companies online also provide quick life insurance, such as Fabric, Haven Life, and Jenny Life.
Although you may obtain coverage quickly, don’t make an uninformed decision about purchasing life insurance, Ardleigh advises. Find quotations on several different life insurance options from at least three companies. Be aware that when you work with an independent broker to handle your comparison for you, it still isn’t long and may not require an exam for medical reasons if you’re healthy.
Be an educated shopper.
If you like to compare shopping, put your intelligent buying skills to work when looking for an insurance policy for life. Alongside comparison shopping, you get a great rate to ensure that you know the insurance products you’re trying to compare.
For instance, term life insurance can offer the most outstanding coverage with the least money. However, it’s a poor choice if you require a life insurance policy that is permanent, like Universal life insurance.
Make sure you do your research before purchasing a policy. “Never purchase something you do not understand,” Ardleigh says.
Do not just choose a brand You’re accustomed to
It could be a good idea to choose the same insurance provider that offers your auto and homeowner insurance. Perhaps there’s a particular company that you’ve heard of because you’ve seen their ads, or perhaps your friend suggested it to you.
Staying with a brand that you are familiar with could be a mistake, though in the case of purchasing life insurance.
“Just that you’ve heard of the company in the past doesn’t mean that the product they offer is the best fit to you,” Ardleigh says. You need to locate the best life insurance provider that offers the best product at the best price for your needs. If you are using an insurance quote site to obtain quotes from various companies, you shouldn’t dismiss businesses that aren’t familiar. They may offer lower rates than the company you are familiar with, possess better financial ratings and provide better customer service.
What works for your spouse Could not work for you.
It could be tempting to decide on the type and amount of insurance you receive on the coverage your partner’s spouse is covered by. However, that may not be the best option for you.
Ardleigh states that the most common reason female clients experienced negative experiences with life insurance before getting to her was due to the fact that they had purchased the same policy that their spouses purchased.
“Insurance is highly individualized,” she says. “Don’t think that what’s an ideal fit for your husband will be the best fit for you.”
Don’t Purchase Life Insurance for Your Children.
Be wary of the hard-sell to purchase the life insurance you need for your kids or if you feel pressured to provide them with insurance of your own. It’s not a great option, Ardleigh says.
Children’s life insurance policies generally are life insurance policies that are advertised as a method of building the value of your child’s money that they can access later on to, for instance, help to pay for college. It’s not the best savings option, however. “If you’re looking to make sure your children save, invest in 529 plans for their college education or open an investment account and show your children how to make investments,” Ardleigh says.
Remember, as well, that your primary goal should be on obtaining enough insurance for yourself to offer an insurance plan that will protect your family members if there is a catastrophe that affects you. Your children rely on you to provide support, not the other way around.