Working Women Lack a Life Insurance Policy Necessary to Sustain Their Household
American women lack aÂ life insuranceÂ policy,Â which they need in order to keep their families going if they were to die, according to a new release from the Insurance Information Institute. While many women carry more coverage than they did in previous decades,Â working womenÂ — and even stay-at-home moms — need more coverage to ensure their families’ lifestyles can be sustained without them.
Life Insurance Lacking Among Working Women
A national poll cited by the Insurance Information Institute found that 43 percent of adult women do not have aÂ life insuranceÂ policy. Among those that are insured, many carry roughly one-fourth of the amount needed to maintain the lifestyle of their beneficiaries.
Working women who are considered their families’ primary breadwinners, on average, carry 31 percent less life insurance than their male counterparts, despite often earning as much, if not more, than their husbands.
Stay-at-home moms were also found to be severelyÂ underinsured.Â In many cases, women who work inside the home assume they make no financial contributions and opt out of purchasing a life insurance policy, without realizing that their lack of contributions would result in daycare expenses and other costs.
Why a Life Insurance Policy is Crucial for Women
The Insurance Information Institute went on to list reasons that working women and stay-at-home moms should strongly consider purchasing coverage. Here is a short list that may encourage more women to jump on board with getting a life insurance policy:
- Replace income for dependents.Â If the family depends on your income, the appropriate amount of life insurance can replace that income if you die.
- Pay final expenses.Â Life insurance coverage can also pay for funeral and burial costs, as well as debts and medical expenses not covered by health insurance.
- Create an inheritance.Â Purchasing coverage allows you to create an inheritance for your heirs, even if you have no other assets to pass on.
- Create savings.Â With a cash value life insurance policy, you can borrow against your insurance before death, if needed.
- Replace services of primary caregiver.Â Primary caregivers’ contributions are often overlooked, but should they pass away, costs arise for laundry, cooking, daycare and more.Â Life insurance can cover these costs.
It’s important to find out how muchÂ term life insuranceÂ you would need to sustain your household if you were to die, so you can feel certain your family will be taken care of in the long run. After you’ve made the calculations, shop for life insurance policy quotes to purchase coverage that is right for you.
(Image courtesy of Ambro /Â FreeDigitalPhotos.net)