Life Insurance: What Every Woman Should Know Before Choosing a Policy
September 30, 2024
In today's fast-paced world, women often wear many hats: professional, parent, caregiver, and household manager, to name a few. Amid the daily juggling act, one crucial aspect of financial planning usually gets overlooked — life insurance. Life insurance isn't just a safety net for women balancing diverse responsibilities. It's a powerful tool for securing their family's future and preserving their legacy. This blog explores why life insurance is an essential component in a woman's financial strategy today.
Understanding Life Insurance Options
Life insurance options include term life, whole life, and universal life. Term life provides coverage for a specific period with lower premiums, which is ideal for temporary needs. Whole life offers lifelong protection with a cash value component, making it more expensive but a long-term investment. The Key features to consider with each option are coverage duration, premium costs, cash value accumulation, and flexibility to meet changing financial needs over time.
Assessing Your Life Insurance Needs
Assessing life insurance needs involves the following steps:
- Evaluate your financial obligations, such as debts, mortgages, and dependents' future expenses.
- Consider your income, lifestyle, and long-term goals, including education or retirement plans.
- Factor in funeral costs and any legacy you'd like to leave.
- As a general guide, multiply your annual income by 10 to 15 years.
Another option to assess your life insurance needs is by using our life insurance needs estimator. Regularly reassess your needs as life circumstances change related to marriage, children, jobs, and other factors.
Factors Influencing Life Insurance Costs
There are several things to consider when choosing life insurance options and costs.
Age and Health
Age and health are key determinants of life insurance costs. Younger women benefit from lower premiums because they pose less risk to insurers. Good health, free from chronic conditions, lowers premiums, while poor health increases costs due to higher perceived risk.
Lifestyle and Occupation
Lifestyle and occupation significantly impact life insurance costs. High-risk business activities or demanding roles may raise premiums. Life insurance helps women entrepreneurs by providing financial protection for their business and family in case of unexpected events. This protection ensures business continuity.
The Importance of Policy Riders
Some of the policy riders carefully curated for women by 1891 Financial Life include the following.
Accidental Riders
An accidental death rider provides an additional payout if the policyholder dies due to an accident. This rider enhances coverage, offering extra financial support for unexpected, accidental deaths.
Waiver on Premiums
This rider provides a financial cushion when the holder cannot work or is disabled. Waivers from insurance premiums maintain coverage without financial burden during such periods.
Living Benefits Riders
This rider allows you to access a portion of the death benefit if diagnosed with a qualifying serious illness, enhancing financial security.
Navigating the Application Process
The life insurance application process typically involves receiving quotes from insurance providers, completing an application form, undergoing a medical exam, underwriting, making a policy offer based on assessment, and policy issuance to pay the first premium.
Tips for a smooth process include being honest, preparing health records, and reviewing policy options thoroughly before applying.
Knowledge Is Power
Grasping the various life insurance options, application steps, and associated riders empowers women to make informed, strategic decisions about their financial security. Proactively securing appropriate coverage protects your family's future and ensures financial stability in challenging times.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team will help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore your options.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.