Statements | Client Login

Life Insurance Is Typically Less Expensive For Women?

January 10, 2017

It’s true in many cases, women pay less than men, primarily because men have a shorter life expectancy than women. In fact, women on average outlive men by about five years. Women also tend to develop cardiovascular problems like heart attack or stroke later in life than men do. This longer life expectancy results in lower life insurance premiums.

But that’s not the only reason why women need to think about Life Insurance.

While other types of insurance such as health, auto and homeowners are often top of mind, life insurance tends to slip through the cracks. According to a recent study, 48 percent of women are without any type of life insurance. While this number has risen about five percent in recent years, it still isn’t high enough.

Here are the Top 3 reasons women should think about Life Insurance in 2017:

1. They’ll gain financial value, regardless of employment or marital status

Today, many women make more money than their spouse or they’re \working as a single parent and are the head of a household. For stay-at-home moms, recent estimates valued their contribution at approximately $120,000 a year (taken from the duties performed in the household on a regular basis such as childcare, cooking and housekeeping, among others).

2. Life Insurance replaces income

Because contributions bring value, that value needs protecting. According to Loretta Worters, vice president with the Insurance Information Institute, if a stay-at-home spouse dies, the family would need someone to handle the household duties. That’s no small task. The cost could be substantial and a life insurance policy would help to cover those expenses.

If one’s income helps to support the individual, their children and/or partner, a life insurance policy will provide financial support for them in the case of that individual’s death. This can help not only cover the cost of the funeral and anything related to it but also with everyday living expenses.

3. Life insurance protects one’s interests.

If the woman is single and you doesn’t have any children, she still may need life insurance. If she carries a high amount of debt, have a co-signer for a loan. Or, if she takes care of an aging or ill parent or family member, having life insurance will help protect her estate, co-signer and those she cares for.

If she doesn’t have insurance but does have debt, typically the executor of the estate will sell whatever they can to help pay off those debts when you die. If there’s a co-signer on a loan, however, that person will be responsible for repaying it. If these scenarios do not apply, she can probably put off purchasing a life insurance policy temporarily. But keep in mind, it’s less expensive to purchase a policy when one is younger rather than older.

The bottom line? Life insurance is a key part of a one’s financial success and security so it’s in everyone’s best interest to ensure women don’t overlook this critical consideration.

Share this with anyone that you think could benefit from this information.  JEHM Wealth & Retirement is here to answer any questions about helping you plan for the future.

Eric and Jennifer Lahaie
JEHM Wealth & Retirement

Copyright © 2017 JEHM Wealth and Retirement Strategies

Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor.  JEHM Wealth & Retirement Strategies and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that JEHM Wealth & Retirement Strategies and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.  

Back To Top