There are many reasons why life insurance should play an important part in every person’s financial planning. Yet women often overlook this key asset protection strategy, and are far more likely than men to be under-insured or have no coverage at all.
Whether you’re a single woman, half of a couple, or a member of a more extended family network; whether you work at home, in the workforce, or as the leader of your own business; life insurance is essential to protect the transfer of your wealth, and more importantly, to protect your loved ones in the future.
As an individual, it’s easy to think you don’t need life insurance because you have no dependents. What’s often overlooked is that life insurance can be used to pay off your debts, final taxes, and other estate expenses – costs that might otherwise prove a financial burden to surviving relatives.
Modern families increasingly depend upon dual incomes to cover ordinary living expenses, provide for extras like travel or leisure pursuits, and to fund longer term financial goals such as education costs or retirement. If you’re a working woman, a life insurance payout can help mitigate the effects of your lost income on your partner or family’s lifestyle, and their future financial objectives.
If you’re one of the increasing numbers of women business owners, life insurance can provide interim cash to maintain your company expenses such as payroll or other operating costs, while your business is being sold or transitioned, and while your estate is being settled. It can also be a useful tool when structuring buy-sell arrangements, and to cover the potential loss of other key members of your company.
As a single parent, you may have primary responsibility for your child’s support and well-being. If so, life insurance can provide you with much-needed peace of mind by ensuring ongoing income to support your child’s future to grow and succeed.
Maintaining a household is a full-time job. More precisely, it’s many full-time jobs rolled into one! If your family had to hire professionals to cover the duties you provide as a stay-at-home mom, the costs would be significant. Alternatively, shouldering these responsibilities themselves may limit the hours that family members could work, resulting in reduced family income. A life insurance policy can help pay for services to keep the household running, and allow your surviving spouse or family members to keep working.
Many women also provide care for aging family members, as well as children (see our article on ‘The Sandwich Generation’). Caring for an elderly relative may include costs for out-of-pocket medical expenses, adult day care, specialized transportation, and more. Life insurance coverage can provide the necessary funds if these financial responsibilities are likely to continue after your death.
Life insurance protection is equally important for women as it is for men. SageVest Wealth Management advises on insurance coverage needs, but we do not sell insurance. We solely help you to identify your coverage needs as part of your broader life and wealth objectives. This structure gives you peace of mind, knowing our recommendations are solely focused on your best interests. Please contact us for more information.