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Insurance Considerations for The Single And Married Woman
Why should a man buy life insurance? To protect his family…replace lost income if he dies… provide for his own retirement security. Why should a woman buy life insurance? For the very same reasons!
Life insurance can be used to pay off mortgages, fund a college education and help guarantee that the spouse won’t have to sell the home or suffer a severe drop in standard of living if the insured dies an untimely death. Although life insurance has always reflected a loving commitment to family, as well as recognition of the need to meet other financial responsibilities, women’s needs for life insurance have generally not been adequately addressed, due, for the most part, to the perception of men and women’s distinct roles in society. As a result, millions of spouses, children, and other dependents could be exposed to serious financial risk—and so could single women.
You’ve Come a Long Way—Maybe
As we begin a new millennium, it’s obvious that a great deal has changed in our society, especially with regard to women’s roles. According to the U.S. Department of Labor, in 1900, only 19% of women of working age actually worked. By 2005, almost 60% of women were active income earners. Yet, women, as a group, still tend be underinsured—and 64% have NO life insurance.1 It’s important for today’s woman to sit down and re-think her life insurance coverage. Depending on marital status and the presence of children, there are various points to consider.
If You’re Part of a Two-Income Family
Nowadays, husbands and wives are frequently economic partners. Today’s two-income family depends on both paychecks to make ends meet. If anything happened to you—and the income you generate—would your family be able to remain in their home? Would your children be able to achieve their educational goals? Would your family suffer a severe financial loss? Adequate insurance on your life can help replace your income, remove uncertainty, and help guarantee your family’s financial security.
If You’re a Single Woman Heading a Household
The single parent family is the fastest-growing population group in the country, increasing from 8.2 million households in 1970 to 12.7 million in 2000, according to the U.S. Bureau of the Census. And that number continues to rise steadily. As a single parent, you may be the sole breadwinner, responsible for the support and care of your children; thus, your need for life insurance can be even more crucial than in dual-parent households.
If You’re a Full-Time Homemaker
According to the 2000 Census, women are staying home in greater numbers then they did even three years ago. The services of the full-time homemaker, while often under-valued, are worth tens of thousands of dollars a year —and that’s what it would cost to replace those services should anything happen to you.
If You’re a Single Woman
The 2000 Census shows that single women who have never been married make up 25% of the population in this country. If you add to that the number of women who are widowed, divorced or separated, almost 50% of women in the U.S. are single. Although many single women believe they have no need for insurance, in fact they may have more of a need than many married women. Why?
First, being single isn’t always the same as being alone. You may have responsibilities and obligations. If you’re a young adult, you may have educational loans, as well as other debts (mortgages, car loans, etc.). The cash value of permanent life insurance can provide collateral for loans. Additionally, should something happen to you, there will be final expenses, which may easily run into thousands of dollars. These obligations—which could fall onto parents or other loved ones—can be met by owning adequate insurance. What’s more, you might intend to have a family, someday. The younger and healthier you are, the more likely it is that you’re eligible for insurance—and the more affordable it is to purchase insurance.
Also, protection isn’t the only reason to consider life insurance. A second reason may be to supplement your retirement income. A cash value life insurance policy that accumulates cash value on a tax-deferred basis, can be borrowed against* to provide additional funds for retirement.
Recommendations
Do you need life insurance protection—or, additional life insurance protection? Only you can answer that question. You may want to speak with an insurance professional who can help work with you to review and analyze your current needs and situation. For more information, please contact Lonnie C. Goldman, MBA, CLTC, LUTCF, Agent, New York Life Insurance Company, at (631) 391-5823.
* Outstanding loans reduce the death benefit and cash value and accrue interest
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