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Many people are aware of the wage gap between women and men but less known, perhaps, is the discrepancy in life insurance coverage. According to a 2021 study by Life Happens and LIMRA, only 48 percent of women own life insurance, compared to 58 percent of men. A 2022 study from LIMRA found that for women who don’t own life insurance, they more often consider “covering final expenses” as the primary reason to own it. However, life insurance is meant to provide financial security, covering much more than funeral costs and other final expenses. Here are nine reasons why life insurance for women is important to consider:

1. Covering Final Expenses

While covering the cost of final expenses is not the sole reason to have life insurance coverage, it is still important to consider. The average cost of a funeral in the United States, with a viewing and burial, was $7,848, according to 2021 figures from the National Funeral Directors Association. The average cost of a funeral with cremation was slightly less, at $6,971. Having a policy to cover these final costs will ease the burden on loved ones in their time of grieving.

RELATED RESOURCE: 10 Steps to Planning a Funeral

2. Replacing Income

A 2022 LIMRA study found that for women who do own life insurance, they most often list replacing lost income as the primary reason. Not only do women make up more than half of the U.S. workforce, most families depend on two incomes to cover household expenses and the loss of one of these income streams could create financial strain. Additionally, about 70 percent of American mothers can expect to be their family’s primary breadwinner for at least one year. On average, however, mothers will spend nearly six years as their household’s primary earner. Having life insurance coverage is key to smart and long-term financial planning for your family’s future.

3. Paying Off Debts

It’s important to consider what would happen to your family’s finances if you were to unexpectedly pass away. Will your family be financially secure?

Even if you are single, or have no children, life insurance can alleviate the financial burden of any outstanding debt, such as car, home, student loans, or medical bills your parents may incur.

Everyone’s financial situation is different, but life insurance coverage is one way to ensure that your family will be able to pay off this existing debt in the event of a death.

4. Covering Household Contributions

It is hard to measure the loss of a loved one. While replacing lost income is important, stay-at-home parents’ contributions must also be considered. Data from Salary.com has shown that the value of a stay-at-home mother’s job is equal to $184,820. This could include household cleaning, cooking, childcare, and other factors. The loss of a parent who is providing these “services” would need to be covered, either by a spouse or outside help.

5. Paying for College

Women with children should consider the cost of college in their life insurance decision, especially given the rising costs of secondary education. U.S. News reported the average cost of tuition and fees for the 2022-2023 school year.

• Private Colleges: $39,723
• Out-of-State Students (public colleges): $22,953
• In-State Students (public colleges): $10,423

Life insurance can help alleviate this cost in the event of the death of a parent, ensuring your child can continue their education with minimum financial stress.

6. Living Benefits for Chronic Illness

If you know anyone who’s suffered from a long-term illness, you know how difficult it can be.

There are a range of long-term illnesses which affect women more commonly than men. 90 percent of those with lupus are women. 80 to 90 percent of chronic pain diagnoses, such as fibromyalgia, are given to women.

WAEPA offers a Chronic Illness Rider, which can be added to a Group Term Life Insurance policy to help cover the cost of care that a chronic illness can require.

7. Life Insurance For Women is Affordable

WAEPA’s coverage is exclusive to current and former Civilian Federal Employees. Given that our rates are calculated for the group rather than for individuals, members often save money on premiums compared to other life insurance policies. Members who switched to WAEPA from FEGLI save an average of $300 per year.

Here’s what a 40-year-old woman would pay for $500,000 in coverage with WAEPA:

$29.40/monthly

Use WAEPA’s free premium rate calculator to see how much you could save.

8. Protecting Your Business

According to the National Association of Women Business Owners, there are a total of 12.3 million women-owned businesses in the U.S. For business owners, life insurance can provide protection for the family, company, business partners, and employees if the owner passes away. Your policy could be used to pay off debts or keep the business afloat if needed.

Additionally, with a family business, a life insurance policy can ensure that everyone gets an equal inheritance. One child might inherit the company shares, while the other receives the insurance payout.

9. Peace of Mind

Life insurance for women is a critical financial planning strategy, regardless if you are single, a female breadwinner, or stay-at-home mom.  With coverage from WAEPA, you can be confident knowing that your family’s financial future is secure.

Other Exclusive WAEPA Membership Benefits:

• WAEPA’s rates can cost less
• Typically, WAEPA members get a partial premium refund every year.
• WAEPA offers several auxiliary member benefits.
• WAEPA coverage is fully portable: even if you change jobs or retire.
• WAEPA’s coverage is not capped by your salary.

[1]https://lifehappens.org/blog/women-and-the-life-insurance-gender-gap/

[2]What Women Want in Financial Services, LIMRA, 2022.

[3]http://www.wipsociology.org/2022/02/10/mothers-are-the-primary-earners-in-growing-numbers-of-families-with-children/#:~:text=We%20find%20that%20about%2070,breadwinner%20is%20nearly%206%20years.

[4]https://inews.co.uk/opinion/chronic-illness-women-me-fibromyalgia-research-treatment-905879

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