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Financial Planning

Five Reasons Women Should Consider Life Insurance


Why It Matters:

  • Fewer women than men have life insurance policies.
  • Women may need life insurance more than men.
  • Many clients don’t know life insurance can have benefits for the living, too.

Back in the 1950s, shows like “I Love Lucy” and “Leave It to Beaver” depicted women as housewives completely dependent on their working husbands. Today, 57% of women in the U.S. participate in the labor force. 1

Yet, despite the fact that 49% of women are the primary breadwinners 2 and 52% of women in a relationship are responsible for managing the money in the household,3 fewer women than men hold life insurance policies.4

Your female clients may not know this, but they may actually need life insurance more than men. Let’s review some of the reasons why.

They’re going to live longer

Women’s lifespans are longer than men’s, so there will be a greater likelihood of medical needs as they age.5 Having a policy that accumulates cash value or has a rider for a chronic illness could provide financial support to cover medical bills, caregivers, and living expenses. And your clients might like this: since women generally live longer, life insurance policies for women are less costly than men’s.

They’re business owners

According to recent statistics, 11.6 million U.S. businesses are owned by women. They employ nearly 9 million people and generate more than $1.7 trillion in revenue.6 As more women become entrepreneurs, there needs to be a consideration for what happens to that business if they were suddenly gone. A life insurance policy could help provide money for a buyout if your client was a partner in the business. It can also provide funds for business continuation, business-related debt, company expenses, and payroll.

They’re more likely to be caregivers

Women, more than men, are likely to take on the role of caregiving7 for children or elderly parents. They can ensure their dependent can continue receiving care by making them a beneficiary on a life insurance policy. That way, there’s financial support to hire a professional to take over caregiving needs once the insured passes.

They may need it for an emergency

A financial emergency may strike at any time. Some life insurance policies build a cash value that can be borrowed against if your client suddenly needs cash. This money can be used to help their family or themselves in a bind.

Their family depends on them

Whether they’re financially supporting the household or providing stay-at-home duties such as child care, housekeeping, meal preparation, or transportation, life insurance can help by paying for service providers if your client passes away.

As part of your client’s larger financial strategy, life insurance can help provide the funds that may be needed during their lifetime or help their family or business partners continue on after they pass. Ask your client to consider the benefits and review the options available.

Things to Consider:

  • Ask your female clients if they currently have life insurance.
  • Let your clients know why women may need life insurance more than men.
  • Share how life insurance can benefit them now and in the future.

1 “Women in the Workforce,” Catalyst, June 2019

2 “More Women are the Breadwinner at Home But Most Still Say Men Treat Them Differently at Work,” CNBC, March 2018

3 “Women are Calling the Shots When it Comes to Household Finances,” MarketWatch, March 2018

4 “5 Reasons Women Need Life Insurance More Than Men Do,” MSN, November 2018

5 “Women Need to Take an Active Role in their Financial Lives,” CNBC, April 2018

6 “25 Intriguing Facts About the State of Female Entrepreneurship,” Startup Nation, July 2018

7 “Here and Now: How Women Can Take Control of Their Retirement,” nonprofit Transamerica Center for Retirement Studies, March 2018

Neither Transamerica nor its agents or representatives may provide tax or legal advice.  Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal professionals regarding their particular situation and the concepts presented herein.

Transamerica Resources, Inc. is an Aegon company and is affiliated with various companies which include, but are not limited to, insurance companies and broker-dealers. Transamerica Resources, Inc. does not offer insurance products or securities. The information provided is for educational purposes only and should not be construed as insurance, securities, ERISA, tax, investment, legal, medical or financial advice or guidance. Please consult your personal independent professionals for answers to your specific questions.