In a recent blog post, I talked about a frightening statistic that showed how many people do not have life insurance. Well, a recent article by Consumer Affairs focused on one specific part of the population: women.
Life insurance ownership is even lower among American women, and despite old-school thinking on the matter, this is a major problem. It will be an even larger problem as baby boomers continue to age.
According to the article, only 40% of women have any life insurance at all. Those that do own a policy have 30% LESS than the men have, on average.
No matter what your situation (or your sister’s or friend’s situation), life insurance is something you need to seriously consider.
According to the Consumer Affairs article, 70% of single parents have no life insurance, and 83% of single parents are mothers.
You’ve been the breadwinner and caregiver for your children. You’ve done everything you can to protect them. But what if something happens to you? Can you afford to leave them unprotected during what will be the most difficult time imaginable?
Stay at Home Moms
Ask any stay-at-home mom and she’ll tell you – she’s the hardest working person in the household. If she got a salary for everything she does, she’d earn about $9,750 per month, according to recent surveys.
But what if you suddenly passed away? Can your husband afford to write fat checks every month to pay other people to do the work she did?
Most responsible couples have life insurance coverage for both the husband and the wife. I talk about this more in the short video below.
Working moms provide $71,860 per year worth of services in addition to their salaries from their jobs, according to the survey I mentioned above. That’s probably no surprise to you!
Even though it would be impossible to replace you, life insurance can replace the economic value of the work you did at home and on the job. It can also give your family the money they need to grieve without worrying about how the bills will get paid.
Women with No Children
If you don’t have a spouse or kids, do you still need life insurance?
The answer is simple: if your death might cause a financial hardship to anyone – from aging parents to the business you own – then yes, you still need life insurance.
If nothing else, you don’t want to leave your final expenses and other outstanding debt as a burden for someone else to deal with, do you?
I hope I’ve encouraged you to at least think about buying a policy if you don’t have one. If you do have one, are you sure you have enough coverage? This handy calculator will help you estimate how much life insurance is enough for your circumstances.
Remember, whether you have a great career or you’re a “homemaker,” it would take thousands of dollars every month to replace the work you do.