Did you know that 100 years ago, women were not even able to buy life insurance? Now women make up more than half (57%) of the U.S. labor force. Yet in spite of their important contributions to the nation and their families’ financial well-being, about 43% of women still don’t have life insurance.
In fact, the average insured woman has $129,800 of individual life insurance, which isn’t enough coverage to maintain her family’s current lifestyle. One rule of thumb calls for having life insurance that equals seven to 10 times annual salary, but each situation is different.
For women with a spouse, children, or even parents who depend on them, life insurance funds could help replace their incomes and provide essential financial support for survivors. The proceeds of a policy could also help pay for costly child care, future college costs, and other household needs that are often met by stay-at-home moms.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Policies commonly have mortality and administrative charges beyond the cost of premiums.
Sources: Insurance Information Institute, 2015; U.S. Bureau of Labor Statistics, 2015
The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. Copyright 2015 Emerald Connect, LLC.