While women may have their own views on life insurance, both sexes share similar opinions about death. Haven Life found that both men and women believe that their deaths will have a significant impact on their families. Both men and women agreed that the death of a spouse who is primary caregiver or primary earner would have a negative impact on their family life.
Although men and women may agree on the impact of a loss in the family unit, there is certainly a gender gap when it comes to life insurance purchases. 67% of women have insurance for life, compared with 79% of men. Women’s ideal life insurance amount was approximately half what they actually invested.
Abby Reddy is the CMO and cofounder of Quotacy. She found that 57% of Quotacy’s clients are men. Reddy also stated that many wives sign up their husbands for life insurance, add child riders to protect their children, but they don’t buy life insurance. This
Gender gaps in insurance coverage are a problem the industry has been dealing with for many years.
Women’s life insurance
According to Quotacy and Haven Life, women are often under-insured when it comes down to coverage. The average amount of life insurance for women is $231,342, while that of a male is $423,102.
One reason for concern about coverage costs is fear. Allison Kade is a Fabric millennial money expert. She says that many women are worried about the affordability of life insurance. Although a large sum like $500K may sound intimidating, term life insurance might not be as expensive as you think. Based on an Fabric quote for a 30-year old female in good health, the policy would cost $24.78 per monthly for a $500K, twenty-year policy.
It is sensible to use life insurance to leave loved one a financial cushion, especially as many women are both breadwinners and caregivers. There are many other reasons women should prioritize life insurance. The right type of life insurance coverage can help to close the gap between the genders during a divorce.
Lauren Blair is a lawyer and an insurance expert at FreeAdvice.com. She has more than 25 years of experience in family law. According to Blair, “Given the continuing income disparities between men and women it is important that the wife receives an equal division of property assets in a divorce.” A well-structured life insurance policy can be a valuable, divisible asset.
A term insurance policy does not have a cash value. Blair stated that term life insurance is not a financial asset that can be divided among spouses. A term life policy is therefore awarded in its entirety to the owner.
An permanent insurance policy could be a better option. It is a cash-value asset that builds with each premium payment. Blair explains that permanent life insurance policies purchased during marriage are considered marital property in common law and community property states. According to the state’s divorce laws, they would be subjected to equitable or equal division.
Life insurance is an important part of a woman’s financial planning, regardless of whether it is to provide for your dependents in the event you die or as a wealth- and asset planning tool.
The best life insurance companies for females
All states, except Montana, allow insurance companies to use gender for determining rates for insurance policies. Life insurance is generally less expensive for women because women live longer and face fewer health risk than men. Kade of Fabric insurance affirms that women live longer statistically and rates are based upon actuarial data. However, there are many factors that affect the final cost of a policy’s premium, such as lifestyle, health, and personal details.
Every person’s life insurance needs will be different depending on their individual circumstances. However, we did some research to find companies that might be better suited for women looking for specific things in a policy.
| Company | Best for |
|---|---|
| Protective Life Insurance | Pregnant women: Best |
| State Farm | Fast coverage without a medical check is the best option |
| Prudential | Ideal for high limits |
| Northwestern Mutual | Best for financial planning overall |
| Principal Financial | Best for diabetics |
Protective
Protective Life Insurance may be an option for pregnant women who wish to obtain coverage. The chances of approval are higher if you apply earlier in your pregnancy. Name your baby as beneficiary. However, minor beneficiaries will not be eligible for a death benefit payout. The courts can intervene to appoint a guardian if there isn’t one appointed. This can be costly and time-consuming.
After the baby is born, mothers-to-be may want to add a child rider on their policy. Protective’s child riders can be added to policies for infants as young at 15 days. They also provide a death benefit in the event that your child dies. You may be able to convert the rider to a permanent policy regardless of your child’s health. This could make it affordable to insure your child while they are young, and also lower premiums.
State Farm
State Farm offers quick and easy online life insurance quotes. If you are looking for instant approval on life insurance that doesn’t require a medical exam, then visit the website to request a LifeRate estimate .
It takes less than 10 minutes to complete and provides you with tools and calculators such as the State Farm calculate my life which helps you determine how much life insurance you need.
Prudential
Calculate the amount of life insurance that you may need if you are a high-earner by multiplying your annual income by five to ten years. Prudential might be a good choice for you if you have a lot of money. It allows policyholders to allocate a benefit up to $10 million. There are three types of universal insurance available that offer flexibility to help you save.
Prudential earned an A+ (Superior) in financial stability from A.M. Best.
Northwestern Mutual
Northwestern Mutual is a good option for women who consider life insurance an important part of their estate planning and financial planning.
The universal and dividend-earning whole life policies at Northwestern Mutual offer great savings and, as a mutual company it is eligible for dividends. You will also have the opportunity to consult a certified financial advisor who can help you create a financial plan that changes as your policy’s cash values grow.
Principal Financial
Around 15,000,000 women are living with diabetes in the U.S. It is more difficult to purchase life insurance if you have a pre-existing condition. However, Principal Financial is happy to help women with diabetes.
Principal underwrites individuals suffering from Type 2 or adult-onset diabetes. An applicant with diabetes can still be eligible for standard pricing, preferential pricing, or second-tier premiums, unlike many insurance companies.
Types of women’s life insurance
There are two types of life insurance: term and permanent. Although term life is cheaper and easier to get, it does not offer long-term benefits because of its short duration (10-30 years). Although permanent policies are more costly, they may offer better options for women.
- There is no expiration: Your coverage will not end if you don’t pay your premiums or keep your policy current. This is a good thing, as women live longer than men.
- Cash value and a death benefit: The death benefit refers to the money you leave your beneficiaries. The cash value amount is similar in concept to an investment you can borrow from and access.
- There are two options. The cash value account can earn interest like a savings account, or it can be used to invest in stocks or index funds. Your risk tolerance will determine your options.
A licensed financial planner or insurance agent can help women who are looking for life insurance policies to choose the right type of policy.
- Whole-life insurance: Premiums are fixed and the cash value earns interest like a savings account.
- Universal Life Insurance: Premiums are flexible and cash value earns interest like a savings account.
- Variable universal insurance (VUL).: Premiums can be adjusted and cash value can either be invested in stocks or bonds, or mutual funds.
Every person has different financial goals. For some women, a term policy may offer lower premiums. It’s a smart idea to speak with a licensed professional and to compare quotes from life insurance companies to find out what’s available.
Questions frequently asked
Which is the best company to insure women’s lives?
There are many insurance companies that offer life insurance, and every person’s needs will be different. Talk to an insurance agent to find the best rates and features for you.
Can a pregnant woman get life insurance?
While women can purchase life insurance while they are pregnant there are some things you should consider. It is better to apply for insurance policies early in pregnancy. Insurance underwriters won’t charge you more premiums if your pregnancy is normal. Talk to a licensed agent about how to best approach pregnancy insurance.
Can I name my unborn baby as a beneficiary of my life insurance policy?
Many insurance companies require that you wait until your baby is at least 15 days old before you can claim. Be sure to name your child as a beneficiary and appoint someone trustworthy to administer the death benefit until the child reaches legal age. The courts can appoint one for you if you don’t. This could prove costly and time-consuming.