Women and Life Insurance

Women and Life Insurance

Core Facts

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Today, women have more financial responsibilities than ever before. In fact, according to a Regions Bank study, more women feel they are solely responsible for household finances than men. 

In another study, more than half of women said the thought of running out of money in retirement keeps them awake at night — their biggest fear other than losing a spouse. About the same amount of women who responded said they fear losing all their money and becoming homeless. 

Given this concern that women feel, whether single, married, employed, or a stay-at-home mom, you most likely need life insurance. At the very minimum, life insurance can aid in paying for the costs of funeral and burial services, estate administration, outstanding financial obligations, estate taxes, and the uninsured expenses of a final illness.

The hard truth is that death is inescapable, short of someone discovering a way to reverse aging permanently, and life insurance is not like other types of insurance. It’s the only kind of insurance where the policyholder is guaranteed to need it at some point in time. 

“This distinction is important to understand,” notes David Lerner Associates, Vice President of Insurance Services, Dan Gardella. “When viewed through this lens, life insurance isn’t an expense — it’s an asset that will eventually provide a return on your investment. As long as you pay the premiums and maintain the policy, your beneficiaries will eventually receive the death benefit.” 

Who needs life insurance? The short answer is everyone.

Life insurance types and options:

Life insurance comes in many different sizes and shapes, and determining the policy that meets your needs, may depend upon a number of factors. Understanding the basic kinds of life insurance can help you discover the policy that's appropriate for you.

Term life insurance provides a simple death benefit for a specified period of time. If you pass away in the course of the coverage period, the beneficiary you name in the policy receives the death benefit. If you live past the term period, your coverage ends, and you get nothing back.

Whole life insurance is permanent or cash value insurance that provides insurance coverage for your entire life. With most whole life policies, part of your premium is added to the cash value account, which earns interest. Some whole life policies also pay a dividend, which represents a portion of the company's profits made during the prior year.

The cash value grows tax deferred and can either be used as collateral to borrow from the insurance company or be directly accessed through a partial or complete surrender of the policy. It is essential to note, however, that a policy loan or partial surrender will decrease the policy's death benefit, there could be income tax implications, and a complete surrender will terminate coverage entirely.

There are many other types of life insurance policies available. The bottom line is that life insurance protection for women is equally as important as it is for men. It may be time to consult an insurance professional who can help you assess your life insurance needs and offer information about the various types of policies available.

It was found recently that people don’t buy life insurance because of competing financial priorities or because they think they cannot afford it. Interestingly, it was also found that consumers overestimate the cost of life insurance by as much as three-fold. 




Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Certain life insurance policies are offered by prospectus only. Investors should request a prospectus from the issuer or sponsor before investing. Read the prospectus carefully and consider the investment objectives, risks, charges, expenses and other information before investing.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC


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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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