What Women Need to Know About Life Insurance

Life insurance isn’t just a man’s game anymore. Life insurance for women is an important part of overall financial planning that is too often overlooked. 

Who needs life insurance?

Primarily, women who have dependents need life insurance. Whether it’s children or your aging parents, if someone is depending on you to support them, then you should have life insurance.

If you have a large debt load from student loans or a home purchase, and a family member cosigned for any part of that debt, then you’ll want to have enough life insurance to cover that amount.

How much is enough?

If you have dependents, a good rule of thumb is to have enough life insurance to cover 7-10 times your annual salary. If you have debt, make sure to get enough to cover the amount you owe, especially the amount that was cosigned.

What type of life insurance is best?

For most people, term life insurance is the perfect solution. Term life insurance covers you for a specific period of time. You’ll want to make sure you have enough to last until the kids finish college, or you reach retirement age (when retirement income kicks in and you no longer need life insurance).

Is Whole Life ever a good idea?

Fr the most part, Whole Life and other permanent life insurance policies (that last your entire life, rather than a specific period of time), are outdated products. Life insurance agents make large commissions on these options and will often try to convince people they need this kind of coverage.

Whole Life really only has two purposes. It can serve as an estate planning strategy in certain instances (usually for wealthy families). Or, if you have a child who has special needs a permanent life insurance policy may make sense. If your child is going to be dependent on you for your entire life, as well as after you are gone, then you’ll want to have proper strategies in place to keep your child safe. If you’re young and healthy, you can save money on premiums by looking for a term policy that allows you to convert to a permanent life insurance policy later.

True story: life insurance for women is a relatively new product. Make sure the value of your life is properly insured so that your family will be taken care of no matter what. Ask a friend for a referral to a trusted agent, or comparison shop online for the best policy.

View the original video at Yahoo! Shine.


Comments are closed.