Life Insurance from a Woman's Perspective

Life Insurance from a Woman's Perspective

Core Facts

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The world looks a lot different in 2017 than it did in the 50s or 60s, when Suzy Homemaker stayed home, dutifully waiting on Jack Workman to return home from his day of hard work. Suzy had the dinner ready, the kids quietly tucked away in the corner, doing their homework. 

Today, it’s more like the kids are yelling at each other over the iPad, while Mom tries to tune them out and make dinner while navigating a work conversation on her cell phone. Meanwhile, Dad is either doing the same or trying to get some work done on his laptop. 

Nowadays 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 is a huge source of stress and 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. 

These are major concerns, and with this in mind, whether single, married, employed, or a stay-at-home mom, women will most likely need life insurance. This is true for a multitude of reasons, the least of which is that 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 fatal 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. The reason for this is that it’s the only kind of insurance where the policyholder’s family will need it at some point in time.

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

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. 

Whole life insurance can provide permanent life insurance coverage for your life. One of the key features of whole life insurance is it may build tax-deferred cash value and dividends. A policy owner can access the values to help pay for college tuition, supplemental retirement income, or to start a business. These are just a few examples. This can be done through a loan feature offered in the policy. Please note, any amount of cash value borrowed from the policy value decreases the face amount of the policy. The policy owner can pay back the loan if they choose to, however, it is not mandatory.

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.

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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