Whether it’s innate, learned, or even by default, the role of compassionate caregiver is often embraced by women. From congratulating friends on work accomplishments to ensuring your family has a plan for the unexpected, women’s care for others extends into all facets of their lives. Yet, despite more women buying homes, becoming the household breadwinner, and continuing to manage the day-to-day lives of their families, there continues to be a gap in how much life insurance coverage women have relative to men.
According to LIMRA and Life Happens, only 47% of women have life insurance compared to 58% of men. This deficit is significant, as the lives of modern women are increasingly complex and in need of financial protection more than ever. If you have people who depend on you for their well-being, then you usually need coverage. A life insurance policy helps provide financial protection for your family should the worst happen. If you were to pass away, your loved ones receive a payout, called a “death benefit,” that can help pay for the mortgage or rent, childcare, shared debts, burial expenses, and other day-to-day bills. Or, if your family can stash away some of the money into a savings or investment account, it can make a substantial difference in their long-term financial health.
While no one wants to think about a future where they aren’t around, it’s empowering to know you have a plan in place no matter what life throws at you. If “buy life insurance” has been lingering on your to-do list, here’s what you need to know.
Life Insurance Is Usually Cheaper for Women
Let’s not bury one of the most compelling points. Life insurance is usually more affordable for women. That’s right — no pink tax here. For example, with term life insurance, the cost of coverage is based on a policyholder’s risk of passing away during the term length. Statistically, women live longer than men and engage in less risky occupations and hobbies, so life insurance costs less for them.
According to all-time life insurance policyholder data through March 2021 from Bestow, women pay nearly 60% less for term life insurance. Women’s median monthly life insurance premium is $33.60 — for men, it’s $52.70. However, life insurance can be even more affordable than that. A healthy 30-year-old woman can buy a 30-year, $250,000 life insurance policy for as little as $20 per month.
Women Bring Immense Value to Their Households — Both Personally & Financially
Women, and especially moms, are superheroes. They have an incredible ability to juggle a myriad of responsibilities, including maintaining a career, the family calendar, travel plans, birthday celebrations, dinner plans, school responsibilities, pet care, and the list goes on.
Regardless of personal income, women should consider having life insurance coverage in place that’s at least equal to their partners, including stay-at-home moms. Salary.com estimates the value of all a mom’s unpaid labor to be nearly $180,000 per year. If a mom were to pass away, that’s an immense loss of emotional and financial support for her family, which is why life insurance is so important. It can provide a financial cushion when her family will need it the most.
Life Insurance Is Not Only for Moms
Think of life insurance as a way to leave a legacy. Who wouldn’t want to leave their loved ones better off financially? If you have a partner, you likely rely on each other to help cover some portion of the bills, like expensive rent in a big city or the mortgage you share. Additionally, if you’re single, you might think you don’t need coverage — and you could be right. But consider this. According to the National Association of Realtors’ “2021 Home Buyers and Sellers Generational Trends Report,” single women account for two times as many home purchases as single men. If you’re a single woman who owns a home or if you’re saving to buy one soon, what do you want your loved ones to do with the house if you pass away? By having a life insurance policy that’s at least equal to your mortgage balance, it helps prevent your beneficiaries from needing to make a hasty decision due to financial concerns. They could rent the house out, pay it off, move into it, or sell it when ready.
It’s Ridiculously Easy to Buy Life Insurance
Like other areas of your financial life, technology has made purchasing life insurance easier than ever. Through an all-digital company like Bestow, you can apply online for affordable coverage in as little as 5 minutes. If approved, you can get your coverage in place immediately, and you won’t even have to take a medical exam. So if you are putting off buying a policy out of fear it will be a hassle … don’t. Just take 5 minutes before your next Netflix binge-watching session to apply.
Brittney Burgett is the Head of Communications at Bestow, a life insurance innovator that’s using technology to make coverage accessible to millions of families. She has worked in the life insurance industry for more than six years and believes that managing your financial life doesn’t need to be intimidating or complicated, which is a philosophy she brings to her work at Bestow.