People of all genders buy life insurance for the same reason: peace of mind knowing your loved ones will be taken care of if something happens. The death benefit from a policy can replace lost income, cover debts, or pay for funeral expenses.
It may come as a surprise that, although women have similar reasons for getting life insurance, they are less likely to own life insurance than men. According to a 2021 LIMRA study, only 47% of women have life insurance, compared to 58% of men. Many women cited not feeling very knowledgeable about life insurance as a reason for not getting insured.
So, what are the facts about life insurance for women? While everyone’s situation is different, a few important factors affect life insurance policies and costs for women. Some of these have to do with common life events and others with statistical trends.
When life insurance for women isn’t different
It can be helpful to first understand what doesn’t affect women’s life insurance rates. There are many different life insurance products available, regardless of gender. For this reason, transgender women can expect to go through the same application process as women assigned female at birth. Of course, being asked for medical documents as a trans person can be a source of stress. It can help to know what documents you will be asked to provide, and understand as much about the process as possible.
A number of factors affect womenhttps://fidelitylife.com/life-insurance-basics/who-needs-life-insurance/life-insurance-for-lgbtq-persons/’s life insurance rates the same way they affect men’s. For example, being a smoker, having a high-risk job, like a police officer, or participating in high-risk hobbies like skydiving can lead to higher premiums regardless of gender. Also, for everyone, the cost to secure a new life insurance policy goes up with age. This is because the older you get, the more likely you are to pass away. Another factor that won’t impact life insurance rates for women is the state where you live, though it may affect which policy you can choose.
4 factors women should consider when choosing life insurance
Here are 4 things for women to keep in mind while shopping for a policy:
1. Health and medical history
Health is a big factor in determining life insurance rates, and women have different health concerns than men. Certain cancers, like breast cancer and uterine cancer, are much more common in women. So, having a history of cancer can affect premiums and eligibility.
Other issues common to women, especially hormonal ones like polycystic ovarian syndrome (PCOS), can impact how much you’ll pay for a policy too. This is because hormonal issues often come with related symptoms like depression, anxiety, or weight gain, all of which can lead to higher rates.
Even if you don’t have a personal health history of one of these diseases, family history will be considered when you apply for life insurance. Of course, a family history of diseases more common to men, like prostate cancer, likely won’t impact rates for women.
2. Pregnancy
Expectant parents often want to get a life insurance policy to protect their future child. After all, babies come with new financial responsibilities, and your financial goals might shift to things like saving for college.
While you can apply for life insurance while pregnant, there are a few factors to consider. First, insurers use your weight to help underwrite your application. Most insurance companies will use your pre-pregnancy weight. Second, pregnancy can come with unique health complications like gestational diabetes or high blood pressure. If you’re experiencing pregnancy-related health issues, you might have to wait until after you’ve given birth to apply for life insurance or pay a higher rate. Finally, while you can usually get coverage early in your pregnancy, if you’re further along, many insurance companies may not cover you until after the baby arrives.
If you’re thinking of getting pregnant, it may be a good idea to apply for life insurance as soon as possible to lock in the best rates and avoid any complications with securing a policy.
3. Employment status
Women still handle the majority of caregiving. If you are a parent or caregiver to a relative, it’s important to take these roles into account when choosing a policy.
While many people estimate how much life insurance they need based on income, it can be useful to have insurance even if you are not currently bringing home a paycheck. A 2019 AARP study estimated the economic value of unpaid family caregiving at about $470 billion. Suffice it to say, if a caregiver passes away, replacing their contribution can cause a family serious financial strain. Having a life insurance policy in place can help your family replace those duties.
If you are currently employed, many employers offer life insurance as part of their benefits package, but it may not be enough. If your employer offers insurance, it’s a good idea to check how much coverage you have and purchase additional coverage through an individual policy if necessary. Not sure how much coverage you need? Our life insurance calculator can help.
4. Cost
On average, women tend to pay lower life insurance premiums than men. This is because women have longer life expectancies than men. However, age is a factor for everyone applying for life insurance.
For older adults who are looking to purchase life insurance, there are still options. For example, if you’ve paid off most of your debts and have lighter financial responsibilities, final expense life insurance can be a good fit. Final expense is a smaller policy that can help cover funeral costs and other end-of-life expenses.
Best life insurance policies for women
Choosing the right life insurance policy depends on your unique financial needs and situation. For some women, term life insurance, or life insurance that lasts for a specific amount of time (usually 10, 20, or 30 years), might be the best option. For example, a 20-year term life policy is a great fit for new parents about to raise a family. For other women, permanent life insurance, or life insurance without a term limit, might be a better option. For instance, permanent life insurance can help women in good health secure coverage no matter how long they live.
If you’re a woman ready to find your best life insurance policy, we’re here to help. Get your quote online today or speak to an agent directly at (877) 380-4432 to discuss your options.
